From the update on February 9th:

“It’s unlikely silver is going higher any time soon. There could be some upward spasms as the crowded trade exhausts itself; it’s likely we’ve seen the SLV highs for quite some time.“

Taking today’s pre-market action into account, SLV is down -12% from February 9th, and down nearly -20% from its most recent top of 27.98, posted on February 1st.

The weekly chart above shows a huge bearish divergence in momentum (MACD); thus far, it’s in-effect.

The next chart has SLV breaking out of a wedge, forming a measured move that could take SLV down to 17.50 – 18.00, area.

The so-called ‘Silver Short-Squeeze’ is becoming a distant memory as the public are being herded into the next non-event.

There’s always the caveat, anything can happen. Somehow there could be a change of character in the market. For now, we’re still leaning toward a deflationary event of some type.

For those that may be new to these updates and as a reminder, rising prices (food, lumber and gasoline) are not signs of inflation. They are signs of supply constriction.

It’s becoming very clear that’s the game (or the plan). Perhaps the most critical constriction is the food supply.

We’ll leave that one there. If you need more info, search Food Supply on this site.

As this post was being created, SLV has continued lower in the pre-market; currently down -2.00%

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.