If we are to ever get silver to break above it’s recent highs around $32.65 or so, how is that likely to set up? Since it would most likely lead to a rapid move higher, to challenge the ATH’s around $50, it will probably come out of a slingshot move.

Today’s overnite takedown, is precisely the kind of set-up that could facilitate such a slingshot type move. First, a large drop(check), then an explosive reversal higher(meaning that the shorts covered and went aggressively long) and then a huge upside breakout on heavy volume that takes out the $32.65 highs.

We will see later today and tomorrow, if such a development takes place?(There is a large number of important economic data points and monetary stats coming out throughout today, followed by the important PCE inflation data tomorrow.) Perfect for a reversal and slingshot higher, set up. If not, we will watch and wait for next week and the FED meeting, to see what happens next.