Next watchpoints for silver.

Bernanke's failure to taper as promised pushed the odds for short term silver moves well into the bull's corner IMO.  Here's how I model it at present.

First, let's review the high level chart because it's important to any short term EW modeling.  As you can see, I think the bullish run to $50 was a 1st wave up, the pullback to the $17s was wave 2 and now we have an inclining double bottom that has an excellent chance of propelling silver up to a new all time high.  I think that if we see wave 3 of 1 up breaking through the top, descending resistance line (green) then it will be a good and primary confirmation of this model.  There are other possibilities as I have pointed out in prior post, but this is my primary count (and always has been).

Here is the close up chart that clearly shows how the breakout of the interior down trending resistance line happened during 3 of 1.  Bernanke's failure to taper most likely marked the bottom of wave 2.  So what we should have before us, if this model is correct, is a monster 3rd wave up in which, most likely, its 3rd wave breaks out though the resistance line that has been in place since early 2011.  If this happens it will massively reduce (perhaps to 5% chance or less) the odds that the bottom as I called it in June was not actually the bottom.  In other words, a 3rd wave up cannot also be an E wave down (see prior post if this doesn't mean anything to you).

As with any 3rd wave, the odds support the concept of large gaps up per unit time.  This is where the sheeple who were laughing at "prepper" "end of world" types start to worry that Bernanke is really not in control and that the "tin foil hat" crowd is not as crazy as the main stream herd would like to have believed.

Of course, I don't know what will happen next and nobody else does either.  All I'm doing is trying to model the sometimes seemingly irrational movements of the herd.  In fact, government has been doing it for a long time.  They call it "opinion polls".  They spend big money pouring through the data to see just how much scammery they can get away with without getting the herd catching on and getting too angry or scared as a result.  In fact, Facebook is now on record as working to put AI in place in order to go through your posts in order to understand the mood of the herd.  Trust me, they are not doing this for your benefit either.  They will put nice, "we're trying to help" lipstick on that pig but the real reason for trying to figure out the herd is for the sole purpose of being able to extract more value from it in some form or fashion.  In other words, they are working to put computers in place in order to use our human nature against us.  It is aggressively parasitic yet few will see it for what it is until it's waaaay too late.