The very high reading of volume during the decline seems to confirm that this is really the direction in which the market wants to go.
The gold stocks to gold ratio is indicating the same thing. The miners underperformed gold to a great extent and are on the verge of breaking below the 2017 lows. They are already below the 2016 lows at this moment, which is yet another bearish sign.
Meanwhile, since we posted our bearish comments on the above chart, silver stocks declined sharply and moved quite close to the late 2016 and 2017 lows. If this momentum continues for a few more days, we’ll see another major breakdown that will open the door to even bigger – and more volatile – declines.
Overall, the outlook for the mining stocks is bearish for the short and medium term. Having discussed the above, let’s check the situation in the white metal.