Technical Update on Silver and the Broader Market 1/9/2017

Technical Update on Silver and the Broader Market

Had a little technical trouble with my default browser crashing this morning, but I did manage to get some charting done. 

The trend on precious metals remains down, and the trend is your friend. 
The $SLV Silver chart is basically what the $GLD is to Gold. Extended wave 5's are common in gold and silver, and that's my forecast (wave iii of 5). If gold and silver continue to break out; I'll have to revise the EW count to a larger counter trend rally, in wave A of 2, and if you're unfamiliar with Elliott Wave Theory, you should review my free tutorial, linked in the left hand menu.  

    The broader market continues to whipsaw in a broadening triangle pattern, which was best seen on the $RUT last week. Nailed it! 

Here's a #tip. Sell the #RUT #Russell #Stocks pic.twitter.com/dKZeadTYUQ

— Anthony Allyn (@3Xtraders) January 4, 2017

 Here's what the Russell 2000 looks like this morning, trading in the predicted range. Damn I'm good!

This morning we're seeing weakness in the broader market, and I'm expecting a pullback over the next few days. ST support on the 60 min $SPX is 2272, and below that 2252. Looking at the 5 min chart, I'm seeing the end of a bullish wave A (triangle), and anticipating a pullback into wave B. I'm not crazy about making predictions, using 5 min charts, but as long as they keep working, we'll use 'em. 

 

 
Resistance on the $VIX is 14.50, so as long as we stay below there, fear not. Wave b isn't easy to predict, or trade, but the areas of support are pretty clear. 

You can watch my twitter @3Xtraders for intra-day updates. If my charts make you money, consider donating to this website, so I can continue to bring them to you. 
Trade on, AA 

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