The US Dollar is still searching for a low, and precious metals and miners won’t correct until the dollar bottoms. Dollar prices were setup to spike lower last week, described in the quick update. However, the potential downward spike unwound after prices formed the bullish engulfing reversal pattern. That was a false signal, prices never closed above the 10-day EMA, and we are getting the spike down now.

The dollar should reach a bottom any day. Precious metals and miners will begin meaningful corrections once the dollar bottoms. Silver and Miners haven’t dropped far enough to register a correction (just one close below the 10-day EMA). Is it possible they experienced an incredibly shallow correction? Yes – but doubtful.

Investing isn’t easy. Constructing price targets is relatively straight forward. Forecasting when prices will reach said goals is expressly complicated. I expected this correction in precious metals to be unpredictable electing not to trade it. It’s misbehaving even more than I expected.

The dollar could very well bottom after tomorrow’s Fed announcement, especially if they mention reducing their overall balance sheet (4-Trillion). I will update after they announce.

-US DOLLAR- The dollar hasn’t confirmed a bottom (closing above the 10-day EMA), and it looks like we are getting the spike lower I expected last week. There should be a sharp reversal higher when prices finally base. The spike low could stretch to the lower trendline around 98.50.