Silver Leads Precious Metals Sell-Off

The iShares Silver Trust (SLV) is down 20% in 4 trading sessions. Let's notice that the SLV has given back ALL of its near-vertical upside blow-off type action ($37.00-$48.35) after the price structure hurdled the top of its 10-month bullish channel.

The SLV has returned to the vicinity of the extension of the upper channel line, which now serves as support starting at $38.30, into the area of the sharply rising 50 DMA ($37.85). That area should contain and reverse current SLV weakness.

Meanwhile, the SPDR Gold Shares (GLD) has corrected by a modest 3% (compared with -20% in the SLV) off of its May 2 all-time high at $153.61. The GLD is nearing a test of key near-term support at $148.00-$146.00, which should contain the weakness prior to the resumption of strength.

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