Update: Dow Theory, ‘Sell’

9:05 a.m., EST

Dow 30 (DIA) breaks trendline

Price action declining towards support

Price action rolls over and in the process, breaks the uptrend.

The prior update, had this link to an explanation of the sell signal (not advice, not a recommendation).

The sell signal is confirmed if/when the support at the dashed line is penetrated with a close below that line.

Summary:

The markets were volatile yesterday with sharp moves in the dollar, gold and the gold miners.

Pre-market action has gold (GLD), continuing sharply lower; – 4.1 points, or – 2.37%.

Inverse GDX, gold miners DUST, is trading higher as well; up about + 1.1 points, or + 6.65%.

For those monitoring this site on a regular basis, none of the above is a surprise.

We’ve been reporting on the pending dollar reversal for weeks; how gold (and silver) still appear to be inversely correlated.

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.

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