Tuesday, May 21, 2013

Dow Theory Update for May 21: Is gold and silver rally fizzling?



 SPY and Industrials make higher highs.


Let’s see what the Dow Theory has in store for us today.

Stocks

The SPY, Transports and Industrials closed up. The SPY and Industrials managed to make higher highs. The primary and secondary trend of the market is bullish.

Today’s volume was higher than yesterday’s, which is bullish as higher prices were supported by rising volume. The overall pattern of volume is neutral with a slight bullish bias. I’d like to see the way volume acts in a clearly down day to label finally volume as bullish. In the meantime, I am cautious.

Gold and silver

GLD and SLV closed down. The primary and secondary trend is bearish, in spite of yesterdays outside reversal bar.

As to the gold and silver miners ETF, GDX and SIL, both closed down. The primary and secondary trend is bearish.

Today I have some computer problems, so I cannot post the figures of the SPY (entry price, DowTheory stop loss, Schannep’s stop loss, etc.).

Sincerely,

The Dow Theorist

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