We are seeing signs that the correction is basically over. Tomorrow, being Tuesday could see the usual pullback, but I don’t expect lows below today or at least not below Friday’s low.

We are seeing behavior that leads one to believe that the silver short banks, have covered as much of their shorts as they can. In the past before the recent breakout above $30, you would usually see strength in the silver price overnite in Asian and European trading and declines during NY hours. Now, we have been seeing the opposite.

The Asians have either taken down the price(or more likely stood aside and let the bankers take prices down) so they could accumulate. Prices have been showing much more upside strength during NY trading hours.

If the banks are letting prices rise during US hours, they have most likely covered their shorts and are joining the long side. A close above the recent $32+ closing high will confirm this and lead to the next leg higher for silver.