A correction first:

The 5000 day average on the DOW is currently located at 7885. It was incorrectly reported on today's original entry as being 7950. The DOW closed out the day at 7888.88. Although the 8000 area has been defended by the PPT, so has the 5000 day average just under it at about 7885. Again, if selling pressure continues the reservoir of this established backstop of support on the DOW for the past 17 weeks could very well burst. If this event does take place, it is quite probable that the DOW could slide in a matter of weeks some 20% or more.

If this scenario does develop, I suspect that the forces of evil will paper short the XAU and HUI Indexes lower as well. Both Indexes have been laboring recently with overhead resistance and could easily contract with DOW weakness. XAU's next big support is at 100 which is a projected decline of 19%.The XAU closed out the day at 123.49. HUI's next major support is at about the 200 area which is lower by about 32% from its last of 294.15. The XAU level at 100 is major long term support and should buffer the HUI from selling lower to it next major support area by holding it closer to the 235 to 240 area.

No one likes to think about weakness in our group but considering the ECU drop from higher levels that took most people by surprise last year, we need to remain vigilant on what conditions might possibly influence prices to move in either direction to the best of our ability so if change does arrive, we are better prepared to deal with it.