The two-day bounce in metals and miners is over, and prices should resume trading lower tomorrow. The Miners and Gold made bearish engulfing candle patterns today; there could be follow-through lower tomorrow, perhaps sharply. Overall we expect prices to drop to the middle of June, around the time of the next Fed meeting. Then prices should find the next 6-month cycle low.
-US DOLLAR- The dollar corrected for one day after six consecutive up days, prices are expected to move higher over the next several weeks as precious metals and miners settle into their 6-month lows.
-GOLD- There was a failed rally into $1,306, and that’s when the cycle topped. It has taken a while, but momentum should begin building to the downside as gold prices drop into a mid-June low. Today formed a bearish engulfing candle pattern and the Slow Stochastics & MFI have broken down (top).
-SILVER- This extended cycle topped at $18.06, and prices are headed toward the June target area below. Note: The MFI trendline (top) has been broken.
-GDX- After two up days, prices should be ready to drop again as they set their eyes on the June target box.
-GDXJ- When the dashed blue trendline is broken prices should fall apart quickly.
LITTLE CHANGED WITH THE S&P500 SO I UPDATED THE APPLE CHART INSTEAD
-AAPL- Prices closed right at a critical support level, a solid break of $90.00 will send prices to $74.00 where a long-term gap resides.
-WTIC- Prices have worked their way back above the $45.00 level solidifying $26.05 as a Major low. A negative divergence is building, and a correction will eventually arrive. I expect prices to head much higher, probably to new all-time highs over the next 5+ years.
Cheers