Silver- Another 52 wk High, S&P Breaks 1120

Silver hit another 52 wk high today, the second in as little as one week, while gold was rather down and traded on average, flat throughout the trading day. Silver is clearly closing the gap a little bit and is becoming a monetary metal to add to its industrial uses. The thing I’m concerned with is from a technical standpoint, this looks too much like the April-May runup which was followed by a significant dive that took us near the lows for the year.

Meanwhile the S&P broke through 1120 level on light volume again which worries me because everyone who was on vacation from the short week and Rosh Hashanah should have been back into the market by today. The light volume could be the bears who were waiting for these technical indicators to be broken as a shorting opportunity. I still remain bearish on the monthly levels, the quick runup on light volume and in my opinion, misleading economic data is still a sign of warning.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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