A Silver Death Cross is in play
If this goes the way it usually does, you won’t hear a peep from the buggish promoters about the Silver Death Cross of the 50 day moving average below the 200 day moving average. Negative talk is not allowed when tending the precious metals herds, you know.
Also, if it goes per usual, silver could put on a hard bounce as “Death Cross” believers dump out and get served with a short-term move counter to their fears.
I have been doing this for many years, and that is the way it most often goes with “Death” or “Golden” crosses. Not long after the condition is recognized by chart jockeys, a move in the opposite direction of the implied direction kicks off, regardless of the market or stock in question.
I am not calling a bottom in the silver price. The blue arrow beckons a potential low, perhaps as a final capitulation on a spike down and reversal. But I sure as shit would not be shorting this Silver Death Cross.
Alternately, if the cross instigates a downside move in the short-term and that move has capitulation characteristics, we’d end the major correction sooner, not later. That is because a post-cross, post-capitulation bounce would likely turn into the next bull market move.
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