Thus far, the metals market has provided us with 3 waves down. So, we have two choices before us.
1 – The market tops out in the near term, and provides us with that 5th wave lower low.
2 - The market breaks out over resistance, and gives us an expanded wave [iv] flat, and then drops to a lower low over the coming month or two (pattern shown in red).
Unfortunately, the market does not let us vote on the matter, but I am quite sure that most of you would want to just get this over with, and head down to the lower low. Yet, we still must follow what messages the market provides to us, so we are prepared no matter what happens.
So, for now, I am simply going to note that I am looking for that lower low in the complex, especially as long as the resistance regions noted on the various smaller degree charts are respected. I have them noted in GDX and silver, but GC/GLD is a bit unclear at the moment in order to provide similar clarity. But, nonetheless, it certainly suggests it needs that lower low as well.
So, for now, I am going to keep this update quite simple and the charts are relatively self explanatory. The next installment will be on the weekend, and I believe we will have a bit more clarity by then. But, remember that this decline is well into is last squiggles and stages of this 2+ year correction. So, whether we have one more lower low or two more, for those with a long term focus, the market is providing you with an opportunity to add to your long positions. Have a good evening.