A lot of market movement lately that’s been creating conflicting signals. The market was positioned to move up – but then dropped into support this morning.
That may seem bearish, but the rebound so far has been unusually strong – so the bulls could be saved. I think the 8:30 report tomorrow Friday morning will provide more clarity as to which way we will be going.
For silver – after having been down some 19 days, there are some signs that things may be turning around. See downtrend line below.
With today’s market drop – there are a potential 5 waves down – in a possible leading diagonal to the downside.
At the same time, there’s support in the 2378 ES region – so there are conflicting signals. There should be a move up eventually – but today’s drop complicates the upside probability.
That said, the bounce was very strong from that region – almost erasing the drop from the open. So what happens tomorrow on Friday will largely dictate which direction we go. We do have an 8:30am report coming out that could push things one way or the other.
The pink count is more bullish immediate term – while the blue count is also possible. So hard to say at the moment.
I’ve been following the pink count — expecting yesterday’s c-wave rally to at least touch the top top of wave a at 1402 TF — which happened Sunday night.
But we were never able to get to 1402 TF in the immediate term.
On the other hand, the reaction off the 1376 TF lows today was quite strong — indicating that the blue count could be in play – assuming any pullback is held as support.
Last time, we posted this down trend on Silver – suggesting that when we cross over the pink line – that may be a sign that silver turns up.
On May 10 – silver crossed over the pink line as shown below.
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