I'd like to report that all the toxic fumes have left our breathing space, but I think it too soon to layer in more stocks just yet.
Ordinarily we get these "re-tests" which is price action that goes down to test support at the earlier lows just yesterday. This is the way it works: buyers are coming in believing they are bottom feeding. The newbies who bought-in for the first time in the last week or so saw their stocks get smashed almost right away. They'll be anxious to just get out at their buy price, and will be selling to the bottom-feeders. It won't work, and the stock distribution will be greater than the accumulators, and down we go again. That's all. No harm done to us. That will be the "re-test". As far as supports, we've got one at 329 for the HUI, $660 on $GOLD, and $14.14 on $SILVER. The positive is we're still on track with the G/S Ratio favoring silver. We may yet go back up and test that 48 area, but I think we're solid to finish the week with the MACD bars (blue) still trending down.
The HUI on a weekly chart is not as solid. That red bearish candlestick is spooky. Already we have the MACD bars lower, and the SlowSTO poised to give us a coincident crossover. We need some serious juice to bring the HUI to where the week will end above the previous week's MACD bar. Hopefully, that spike down today on the HUI daily chart was the re-test! I use the GDX as a volume proxy for the HUI.
As for the Gold and Silver metals themselves, look at the bottom two charts. Look at each chart, and recent activity, then look at mid-November's action......cool, huh? This is what I think we'll see for this period. The 8-dma's will go down just to graze the 13-dma's as they did in November. If so, and you concur, then make your buys at the first close above the 8-dma (blue line). It may not be until next week. Patience is called for. At some point we'll be selling our stocks to the momentum players who cracked and sold, but now want back in at our new, higher prices!
The US$ is still on a nice downward track, but it, too, can re-test. Perhaps once that's culminated our metals and their stocks will zoom with renewed vengeance, outraged at the rough treatment they've received by non-believers!
A lot here to take in, so take your time. Nothing is constant herein, so comparing relative strengths is the best avenue for success. If I'm wrong the best lesson you'll learn from it is to do your own homework. I just put the tools in front of you, it's your choice whether or not to pick them up.
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