Much Needed Break

Early excitement over the death of Osama bin Laden triggered slow but steady selling pressure all day after a week of straight up action. We even managed to close near the lows for the first time in a couple weeks.  We may consolidate a bit more; perhaps even retest the 134 level on the SPY.  The action will slow down during the summer months but there are two reasons to still be optimistic. 1) Positive earnings and ongoing global economic recovery.  2) Growing and rebuilding: raw materials will be needed to rebuild Japanese infrastructure.

On SLV, my initial reaction is to expect some sort of a bounce, but it may take a day or two of sideways movement, as it did the last time silver dropped this far.  The miners are a different story, as some of those charts look to be broken.

Related posts:

1. 10.08.09 – Clean Downtrend Channel Break
2. Break Out Watch AMZN
3. Staying Alive
4. Believe in the Recovery IYR, AMZN, MSFT
5. Much Needed Rest