“I looked ‘round and I knew there was no turning back” Thunderstruck, AC/DC
SLV is knocking on the door of the big breakout.
In fact, silver futures are on a roll in China as I write Thursday night.
The new tariffs floated yesterday by Trump have a disproportionate impact on the EU.
As such, the Friday session in London will be important to watch.
Silver is up over 3% as I write Thursday night.
Is this the breakout we have been waiting for where silver goes on a torrid catch-up run where silver spikes to all-time highs at 50?
As well despite this weeks hotter than expected CPI taking Fed rate cuts off the table, silver and gold not only didn’t back off they held up and rallied.
A nice bullish close after the CPI drama.
The prospect of lower rates and a weaker dollar, a tail wind for the metals, in the past would have sent them lower—especially gold that has been on a tear: GLD has been a Tractor Beam since its December 30 low of 239.
Notice that there has been no more than one day pullbacks—the very definition of a Runaway Move.
The only two consecutive lower daily lows showed up on Wednesday when GLD traced out 2 consecutive lower daily lows for the first time this year.
Checking the weeklies shows GLD is in the 7th week of a vertical run presenting the potential for a short-term buying climax…especially with gold itself flirting with 3,000 for the first time in history.
It’s a Friday in front of a long weekend. Things could get crazy in the metals…especially with GLD within a whisker of the 272 square-out presented in this space.
272 squares out the big 100 low from late December 2015.
272 is three revs of 360 degrees + 90 degrees up from 100.
Clearing 272 opens the door to 288.
Is a Star Burst pattern going to play out in GLD.
Checking a monthly shows the current momentum stated with a monthly Rule of 4 Breakout in March 2024.
So we are also coming up on a 1 year cycle.
The low prior to the monthly Rule of 4 Breakout was at 168 in October 2023 at 168.
It telegraphed the breakout with an outside up month.
Look at how synchronous are the way these prices fit together on the Square of 9.
The aforesaid 288 level is 720 degrees up from the 168 low.
So the key to a fireworks display be it today or over coming days/weeks is clearing 272 with another 90 degrees up being 288.
Be that as it may all these numbers square-out this week and today is the last day of the week.
The monthly count shows we are in a 5th Wave of this advance. 5th Waves in the metals often see more spectacular endings than 3rd Waves.
Who wants to be short the metals with gold in a melt-up and silver flirting with a major breakout.
SLV is threatening a Keyser Soze buy signal.
Allow me to explain.
SLV left a large range signal reversal bar last Friday.
Clearing last Friday’s 29.74 high will trigger a Reversal of a Reversal, or what I call a Keyser Soze buy signal.
Fast moves come from failed signals.
Momentum thru Friday’s high should perpetuate a drive over the Right Shoulder on the weekly shown above.
Offsetting the “Right Shoulder” triggers a Blade Runner buy signal as fast moves come from failed patterns.
In league with our expectations in Thursday’s report, the SPY offset TWO signal reversal bars on Thursday.
Below is the chart from Thursday’s report.
It closed over the January 31st downside reversal.
it also closed above the February 7th reversal.
Here’s an updated chart
The high close on the SPY is 609.75 from January 23rd.
Yesterday’s close was 609.73.
It’s all time intraday high is 610.78 from January 24, 2025.
On the Square of 9 Wheel today squares-out with 621.
Is it possible?
Is it possible the SPY runs to the 620 strike today/Tuesday (the market is closed Monday)?
Anything is possible in markets. Our question is to answer whether it’s probable.
The Square of 9 Wheel likes the odds of a big move over coming hours.
The other level to watch is 616…flagged last month.
616 is 180 degrees straight across and opposite the 2009 low of 666/667 SPY.
616 “points to”/aligns with December 6. This was the prior all-time high on the SPY.
The SPY struck 609 on Dec 6 but backed off to close at 607.80.
Of course December 6 is 90 days/degrees from March 6th, the Bear Market low 16 years ago.
There is some interesting Time/Price synergy at play.
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