We Are Getting Full To Downside

With this downside action impressively steep, we should finally be approaching the end of this corrective decline.  But, overall, there is not much for me to add to the prior update from Monday.

As I outlined in my last updates, GLD is now just about at it’s a=c region, so my expectation is that we should see an upside reaction very soon.  

Silver looks like it still can get one more lower low to the 29.50-30 region.   But, should move beyond the micro wave 4 high in the 31.30 region, then I have to assume wave i is in progress, assuming the move up is impulsive.

As far as GDX is concern, it too is just about done with its downside structure.

Overall, I think it is reasonable to assume that a rally is likely going to begin quite soon.  Ideally, we want to see that rally as an impulsive one in both GDX and silver.   However, I have no expectation of such in GLD as it will be starting a 5^th wave of what I am counting as an ending diagonal, which means its next rally will be an a-wave, which is not really distinguishable from a corrective rally.

Moreover, we are reaching levels of oversold which have been seen since we began this last segment of the rally in the metals complex.  And, this supports our expectation for a near term rally to begin.