Tomorrow should signify a key day in metals and miners. Either prices will bottom and begin to bounce/rally, or they could enter the second phase of a selloff. I mention the latter because it’s been 8-trading days since the recognition day and prices usually bottom by now. A close above the previous day’s high should establish the daily cycle low.

The employment numbers (expected 221,000) come out tomorrow morning before the open. It could mark the low. I have several appoints in the AM, but I’ll try to break free and post an update when possible.


-US DOLLAR- The dollar is creeping higher as the short-term cycle stretches. Prices are due for a pullback, and closing below 101.22 would confirm that a correction is underway.

-GOLD- Prices tested $1,200 today and a close above $1,210 tomorrow will support an interim cycle low. Three or more closes below the $1,179 level will propose a test of the December $1,124 low and potentially $1,000 by May or June.

-SILVER- Prices tested $17.00 today, but we still need a swing low to identify the daily cycle bottom. It’s looking more and more like the 6-Month Cycle topped at $18.54. Three or more closes below $16.60 would imply a test of the $15.68 low. Prices could move sharply lower if they fall below $15.68.

-XAU- The XAU closed the gap, and a bottom may be imminent. A close above today’s high (79.07) should confirm an interim low.

-HUI- Prices fell a little short of filling the gap, perhaps it will close tomorrow.

-GDX- The trend is slowing and a close above today’s high ($21.55) should mark a daily cycle low. Prices are volatile; don’t trust a bottom until prices close above the previous day’s high.

-GDXJ- Juniors secured another inside day, and we require a close above $34.47 to mark a daily cycle low.

-SPY- Prices touched the 20-day EMA and bounced slightly. It still takes consecutive closes below the 20-day EMA to confirm an interim top. If verified, expect a 4% to 7% correction.

-WTIC- Oil dropped sharply and tested the 200-day MA today. We could see a bounce, but the overall trend should test/break the $42.20 low sometime this Spring.

We should be extremely close to an interim low in metals and miners. However, several factors support lower prices this Spring.

The performance in miners has been decisively bearish. The 9-consecutive up weeks in silver may have struck a significant top (see the 2/26/2017 Weekend Silver section). Furthermore, it appears the intermediate cycle in miners topped after just 7-weeks (left translated).

When combined, these factors prompted me to reevaluate the potential for a drop into an 8-year cycle low. I’ll be releasing a special update covering this shortly.