Futures for the S&P 500 Index remain off about eleven points as I write this, indicative of a decent but not epic gap lower on Monday morning. It is interesting that the metals are unable to catch a bid on this weakness, especially with the looming government shutdown in play.
We know that the precious metals and miners remain in established downtrends, complete with declining 200-day moving average virtually across the board. Still, they have failed to take out or even retest their late-June lows for several months now.
Indeed, something has got to give with metals and miners. Because they are in downtrends, another leg lower must be taken seriously. Observing the silver futures chart, below, you can see it is looking heavy at that $21.70 area. If this weakness spills over into early this week of trading, I am looking at ZSL again (ultrashort silver ETF).
We had good success with that ETF inside 12631 last month, but did not overstay our welcome after silver’s initial failure at overhead supply.
Now comes the big test for the next big directional move.
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agreed metals are super bearish… looking for gold at 1000 and some bankrupt miners along the way
“White Collar” bears…hmmm. Maybe this will all become clear tomorrow.