Technical indicators are headed higher and prices are now above moving averages. A close over 281 tomorrow would tell us that shorts are probably covering and the market might have some breathing room. A corrective short-covering rally to a retracement of 285.8 as an initial target is likely, with 289 as the next target. Even with gold poking its head above the water silver hit another fresh yearly low today, as September silver closed at 487.5, down .8 cents. Silver is below the support of the recent 4-month trading range of 495 to 520, and the market is still weak.
Technical indicators are bearish and prices are below moving averages.
Congestion in the 496 area is still resistance. Bulls shouldn't get too excited to buy until two consecutive closes over the 496 area. Until that occurs, remain neutral to bearish, as bears should look for new lows.