Increasingly, my composite technical work in silver and the iShares Silver Trust ETF (NYSE: SLV) is telling me that the decline from 43.08 to 37.92 since Monday is a completed down-leg within a larger, complex corrective period -- or in and of itself a totally completed correction.

I don't know which yet, but in either scenario the current rally should have higher to climb -- into the 40.30/70 area. At that point we will have to make a determination as to whether it is a new up-leg or an intervening rally that separates two corrective periods.

For the time being, the SLV is acting well.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.