I’m going to start with the chart of miners. I believe it paints an appropriate picture of the current situation. Cyclically speaking, I believe the next turning point will appear next week. Unfortunately, it remains unclear if prices will top or bottom at that time. Miners have been correcting for several weeks. The moving averages are pointed lower, so I think the odds favor a bottom next week, but I can’t be certain.
-GDX- The 45-day cycle should produce a high or low next week. A rally above $21.00 would recommend a high between May 28th – 31st. Whereas dipping below $20.00 would increase the potential a low during that same timeframe. Miners have been consolidating for 3-weeks, and it’s hard to say which path they will take. The moving averages are pointed lower, so the odds favor a bottom next week.
-GOLD- If we are going to see a low next week, I will look for support around $1250.
-SILVER- If we get one more dip next week, I will look for a retest of the $14.00 area.
-SPY- The stock market would have to slip below the 270 level to recommend a more ominous outcome.
-WTIC- I suspect oil will find support between $54.00 and $57.00 in the coming days. It would take a sustained decline below $50.00 to recommend something more ominous and a potential bear market in both stocks and oil.
I will update tomorrow if necessary.
For those in the States, have a safe Memorial Day weekend.
Markets will be closed Monday.