On Friday the silver ETF (SLV) broke thru key support dramatically on fairly big volume, so we could be seeing a good buying opportunity in the metals over the next 6 months or so after things settle out. SLV had formed a descending triangle over the last year and tested the lower support level 6 times but has now succumbed, and the moving averages executed a 'death cross'. Gold still has to test its key support at 1200 area and if that doesn't hold it will be in the same situation as silver.
The US dollar had a 'golden cross' ~ 1 month ago and has been surging.
Also, while the large cap indexes have been setting new highs all year, the small cap Russell 2000 Index (RUT) has been going pretty much sideways all year and is getting close to a 'death cross' if it shows more weakness over the next several weeks. The Russell is a measure of investor's appetite for risk and will often deteriorate before the rest of the market does. Also the market breadth has reportedly been deteriorating, with fewer and fewer individual stocks making new highs even as the market indexes climb.
Anyway, I'm mostly interested in seeing more favorable entry levels for gold and silver, which could be happening over the coming months.
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