The Dow Jones Industrial Averages(DOW) are at critical long term support(7950 from the 5000 day ascending average). If this level is finished off with decisive downside action, the long term bull market in the DOW will be officially over. Gold is at short team critical resistance in the $920 to $925 area. The Philadelphia Gold and Silver Index(XAU) is at intermediate term critical resistance at 130(Bollinger Band) up to 137 at its 200 day declining moving average line).
What happens if the DOW takes a swan dive? It could conceivably trade down to the 6200 level within its current declining trend channel. Will it effect pm shares? The possibility exists for the XAU to retreat down to its 5000 day average in the 98 to 100 area where there will be increased demand for its shares.
Can they manage it all?
