Gold missed its opportunity to rally after the Fed meeting and the similarities the to 2015 December low are now invalid. Silver broke below its November low, and the next line of support is the $15.83 June low. I haven’t noticed any buying on weakness numbers during this decline.

The odds are beginning to favor prices dropping into an 8-year cycle low, and gold and silver could descend below their 2015 price lows. Miners rallied sharply in 2016, and I would be surprised if they fall to new lows.

The technical picture is bearish, and I won’t consider taking on long positions until there is a clearly defined reversal. With gold prices extremely oversold I don’t see an advantage at this time to shorting.

I’ll be out of town until Saturday evening, and the Weekend Newsletter won’t be released until Sunday.

-US DOLLAR- The dollar continues its advance, and our target remains around 112.

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-EURO- The EURO has broken to new lows, and the weekly cycle isn’t due to bottom until late March. We could see prices reach the trendline around the 95-level. Gold usually echoes the EURO, so this chart supports gold prices dropping back to $1,000 or lower into an 8-year cycle low.

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-GOLD- Gold didn’t close above the upper trendline to signal a bottom but broke lower instead. Prices are extremely oversold, and the opportunity to rally seems to have passed.

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-SILVER- Prices are catching up to gold and have broken below the $16.15 low. The next opportunity for a common cycle low doesn’t arrive until the first week of January. Prices breaking the $15.83 intermediate low will support a further decline below $13.62 and into the genuine 8-year cycle low.

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-GDX- Prices dropped further, and the head-and-shoulder target between $15.00 and $16.00 is becoming feasible.

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-GDXJ- Junior miners broke decisively below the May low. I have two targets depending on how you interpret the chart. The first comes in around $26.00 and the second at $20.00.

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-DUST- For the brave souls still hold the DUST trade, prices could reach between $80.00 and $100 in January.

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-SPY- Stocks pulled back after the FED announcement, but prices are yet to signal that a correction has begun. We need Closes below the 10-day EMA.

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-WTIC- Oil closed just under the 10-day EMA but not by much. I’d like to see prices close a little lower before calling an interim top.

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We should see buying on weakness numbers come into the market before a solid bottom forms (multiple days of 300-million plus inflows for GDX, GDXJ, and GLD). I’ll continue to monitor the data for hints.