Still Looking Up . . . BUT

With the market following through early in the week to the upside and not seemingly likely to break down in a major (c) wave decline YET, I just wanted to add one more potential path to the mix, as we like to try to stay at least one step ahead of the market.

With the market invalidating the red alternative count as shown over the weekend in GDX, and almost invalidating it in silver, I have to put another alternative path before you.   That is represented by the yellow larger (a)(b)(c) shown in GDX and silver right now.  

This is clearly not as bearish as the prior alternative count.  But, if we see the market turn down in a 5-wave decline (especially breaking below 74.17 with a 5-wave structure in silver), then we will have to increase the probability of this alternative.

In GDX it works nicely since wave iv really did not approach the region of wave i, and we often see overlap in diagonals.  But, it really does not work as well in gold.  Either gold will see a b-wave pullback should we see that yellow count in silver and GDX, or we may have to go back to the more bearish potential as presented by the much larger yellow count in gold.

So, even though we have followed through nicely to the upside thus far, we still have to aware of the potential holes the market may leave before us to fall through.