A solid weekly candle closing at the bottom 10% of it's range gives about an 85% probability that further downside with occur this week.
However, even though there is plenty of technical excuse for more downside, keep these potential bullish developments in mind:
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Silver - Also in a neutral position but not as far off as Gold.
If Silver does not recover back above the green trendline soon and collapses through the critical supporting trendline (dashed red), a potential crash down to an initial target of 24.06 is possible:
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GDX - Had a solid push down last week into 'panic' territory in volume. The QG3 is bearish, so no reason to bottom pick just yet. It's prudent to keep hedges on, such as the ETF DUST. However, this could be a thrust down of a triangle, which is often the last move down before a reversal. We'll see.
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EURO - Keeps cruising higher as expected, but has set a ST critical support level at 1.3264
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Dow - Back in November I posted this potentially bearish scenario for the Dow:
However, the Dow did indeed post a weekly close clearly above the upper orange channel line:
Is this just an exuberant top? or a major break-out? all I can say for now is that the Dow is likely to run higher, as long as it remains above 13,650ish in the ST.
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In the next day or two, I should have the QG3 video up and running. It's been a frustrating process, but I finally have some of this video recording/editing business figured out.
I will also be posting my QG3 trading results next weekend, so far it has performed very nicely since December for multiple markets.
All the best,
QG
