Wednesday, January 28, 2015

Dow Theory Update for January 28: Industrials violate secondary reaction lows unconfirmed





We are very near to a primary bear market signal for stocks


Last Friday 23rd, stocks set up for a primary bear market signal, as explained here.


The SPY, Industrials and Transports closed down. The Industrials violated their secondary reaction lows (which puts us very near to a primary bear market signal). However, lack of confirmation (as neither the SPY nor the Transports violated their respective secondary reaction lows) prevent us from declaring a primary bear market. Tomorrow’s action may prove to be decisive.

The primary trend remains bullish, as explained here and here.

The secondary trend is bearish as explained here.

Gold and Silver

SLV and GLD closed down. The primary trend is bullish as explained here. The secondary trend is bullish too (no secondary reaction in sight).

Last weekend I posted some thoughts concerning the primary bull market signal for SLV and GLD. As you will read, I particularly like this specific signal in terms of risk reward and chart structure (which makes it easy to attain handsome rewards).


Gold and Silver miners ETFs (GDX and SIL)


As to the gold and silver miners ETFs, SIL closed and GDX closed down.

On January 12, 2015, a primary bull market was signaled. More information as to the details of such a signal here.


The primary and secondary trend is bullish..

Sincerely,
The Dow Theorist

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