P R E C A R I O U S

The rapid deterioration of the equity markets this morning smells like something more than a retracement of recent gains. Furthermore, the gold silver ratio that has been an excellent forward looking barometer of risk seems to be pointing towards another spell of liquidation and perhaps a lower, low. Maybe it is just another test of the recent lows, or perhaps not.

For certain, weak hands are selling today. If we get down to 800 or slightly lower, we will see what mettle this rally holds.