Thursday, December 24, 2015

Dow Theory Update for December 24: Trends unchanged.

Unless there are major changes in the markets, I will post sparingly in the next few days. I wish the followers of this Dow Theory blog a merry Christmas.


The primary and secondary trend is bearish, as explained here:

Here is an additional post concerning the likely decline to follow primary bear markets signals:

Following the primary bear market signal of Friday 11th December, stocks made lower confirmed lows on 12/18/2015. Hence, any secondary (bullish) reaction is to be counted starting from these last recorded lows. Hitherto, no secondary reaction has materialized yet. Here you have an updated chart:

Snapshort of a primary bear market. No secondary reaction yet


The primary and secondary trend is bearish as explained here.


The primary trend remains bullish as explained here.

SIL has violated its 9/10/2015 closing low (last primary bear market low) unconfirmed by GDX. Both ETF miners are under a strong secondary reaction (displayed by the red rectangles on the chart below).

We have to wait for GDX to confirm. Until then we cannot declare a new primary bear market. The longer it takes for GDX to confirm, the better the odds for the primary bull market to survive. However, price action is king. Since mid-November GDX has refused to confirm. Here you have an updated chart.

GDX (bottom) continues to refuse to confir. No primary bear market yet


The Dow Theorist

No comments:

Post a Comment