We are undergoing a healthy bull market consolidation, with the likelihood there may be more pain to the downside.
Mining equities continued to march higher but overhead resistance is seen in many equities.
Gold continues to perform very well, despite calls from industry analysts that a correction is due at these levels. In fact, gold does not appear to want to correct just yet and is looking to run to $600.
Metal equities took a thrashing and it appears there may be more weakness in the short term here.
This has resulted into greater attention to the juniors and exploration equities, with a renewed flow of speculative capital entering this sector over the past several weeks where some strong gains have been seen.
The price [of silver] may move higher in anticipation of the launch, but once it hits the markets, initially the price may retreat after strong gains.
The main driver continues to be the silver ETF and this is taking [silver] to fresh 19-year highs.
Equities remain ready to run even higher if the metals allow them to. Otherwise a correction is due.
HUI is indicating a further move higher now looking to target the 330-340 level.
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