Thursday Night Market Summary

What started out as a day in which silver and gold were on the brink of what felt like Armageddon2, both metals picked up steam late morning and finished strong into the close.  Silver finished the trading session up $0.62 to $27.78 and gold managed to pare its losses to close at $1546.50 down $10.80 on the day.  The technical strength of what silver displayed was tremendous.
Silver managed to hang on to $26, a level which was crucial for silver to be deemed ready for a rally.  Bix Weir came out mid-day and predicted we've reached the end of this round of silver manipulation and for the most part we agree with his prediction short-term, but as noted in a previous post, a close above $28 is the indicator we are looking for to confirm we are out of the woods.  Please also remember, when it comes to manipulation, technical analysis has limited usefulness.  One of the most concerning pieces of legislation coming out of the CFTC recently was just detailed here on SD and leaves open the opportunity of a manipulation frenzy until at least May 31st (see CME/COMEX Grant JPM Temporary Waiver for Reporting Positions Exceeding Speculative Limits).

Here is a chart put up on SD this afternoon reaffirming the technical strength displayed by silver.