Wednesday, March 12, 2014
gold and silver and the stock market
The biggest reaction on the way up from the early January low in gold has been $42 and as long as no reaction is much bigger than that (blue rectangles) the up trend will be in good shape. In silver the biggest reaction was $1.70 and as long as reactions on the way up don't exceed that by much the up trend will continue (blue rectangles).
Once the upside targets have been reached I think gold and silver will resume their bear markets. Gold will probably drop close to its 1980 high at $850 while I think silver will reach my long standing target of $13.
The bull market in stocks is still going strong with all three of my trend indicators, the Dow, the S&P 500, and the NYSE advance decline line visibly above their rising 50 day moving averages. As long as two of these three indicators remain above their 50 day moving averages the uptrend from the February 5 low point should continue to move the averages to new bull market highs.