After Friday’s sharp selloff, the market rebounded with strong breadth: 2428 stocks advanced compared to 1376 that settled down. Bargain hunters were active, this means that money is still pouring in this market looking for attractive investment ouside of the fixed income market. Options traders were also on the buy side of the market by purchasing calls. This kind of action is, in our opinion, symptomatic of the beginning of a period of consolidation/correction that may last some time.

The silver market has been trading last week in a tight range between usd 17.5 and 18.30, without clear direction in swift up and down moves. The systematic models based on prices have still not turned up.