Today Aug 17, was a brutal day for the markets, and from the chart pattern for gold and silver, and their miners, things don't look too promising, in the short term (and possibly the mid term as well). Let's start with silver (SLV) along with an example miner SLW. In both SLV and SLW, they broken below a short term ascending trendline (white). It looks likely that further declines to a lower support level seems likely, with the lowest support level being the long term ascending trendline (red). If that level is broken then I think silver's uptrend is dead.
Gold seems to be in danger of breaking it's long term (from Jan 09) ascending trend line (in red). For gold's uptrend to continue, it must not break below the red ascending trendline. Notice that two example miners KGC and GG have already broken below their long term ascending trendlines. We'll see what happens, but things don't look promising at the moment.
As much as I hate to admit, but compared to gold and silver, the SPY seems to be the strongest. Granted today was an ugly day, and downside moves seem very likely. You can barely see the red ascending trendline which markes the upward trend from the March 09 lows, to the recent highs, and it's way below at 94. We're now hovering around heavy support at around 98.3, with another major support level at 94.5. We can have a downmove to 94, and it still will not invalidate the uptrend. If the market can smash through 94, then can we say the bear market rally is dead. But don't expect a move down to 94 to be linear. In fact a downmove might not even happen at all. Remember government always have weapons to deal with short sellers.
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