The lower the prices go, the bigger the physical disconnect will become. Right now above $40 it will not be that big, but as it heads below $35.00 (if it does) then this will cause problems with supply issues. People will stop selling unless they get a massive premium and thus the prices have to go up or the disconnect would go stronger. Sort of like stretching an elastic band goes stronger and then we all know what happens when you relieve pressure. I don't think it will go down that much. I could be wrong, and long term technicals are way overextended that it would take a decent size pullback to break their trends.
I'm writing this live at 11:21 am and the market is up to $47.31 and even higher than it shows on this chart of a few minutes ago. The five day moving average was not resistance (other than many seconds) as was the fibonacci at the same point. For the crash to not be a failure it really needs to stay below 46.75 and even though it is above this level that does not mean anything yet. This move higher could be a pierce above of which would bring more selling. That could happen maybe, but when I get a message hours before the market opens about someone having a dream that the market would crash to 43$ and then rally back up to where it was and I see this live, it is a little bit freaky. Finally I said the intermediate trend was bearish with the massive selling. This has been now changed to neutral as of now.
Since the bottom over twelve hours ago the silver market has rallied back to $46.00 an ounce or almost ten percent. The bulls are not dying without a fight and it is still tough to determine if this is an intermediate term top or this to be the failure of what now would be an even bigger explosive breakout. The odds favor this to be an intermediate term top and thus because of the rally this will give some people the opportunity to get out of some silver contracts. This rally is guilty on the intermediate term simply because the five day moving average is declining. The massive six dollar drop and all other sell offs are guilty on the longer term time frame simply because the fifty day moving average is rising. The battle will now insist between the five versus the fifty and i'll get more into this later on. Short term it found resistance last night at the first fibonacci level and then pulled back. It successfully made a higher low and got above the fiboancci level and then found it as support for this last lift off. It currently is now as the one day moving average and another area to find resistance. The next key resistance levels is the five day average and the upper fibonacci level at $46.77.
Even with this large move it was not able to break this bullish trend. When you have this kind of volatility I must put the word "caution" in the wind, but markets don't crash in a superb uptrend. Rather markets crash as it is in a bear market and usually with a declining fifty moving average as well as the 200 day average being flat or declining. Rather this was a violent correction within the powerful uptrend. Support was found last night at the trend line shown on this chart as well as the 18 day average of lows and many other reasons. Obviously something is going on behind the scenes and if they have it planned it go much lower in the upcoming weeks then thats what will happen. We all know (or should know) that every market is controlled by the new world order forces and they will do what they wish. This doesn't stress me out, because I think back to the song "You can't always get what you want" by the Rolling Stones because they may want to crash the silver market and try to keep people clueless about fiat currency, but in my humble strong opinion that they will not get that to happen.
Nothing has been done to destroy this chart as its still working on having a winning quarter again. As I have spent about 25 minutes making this blog the silver market is now at $46.50 and the market keeps moving higher and thus up over ten percent in sixteen hours. Therefore after the crash the market is neutral as it has moved past the 50% mark on the crash and when you see fibonacci support at $18.95 and we are well over double this figure then this tells us it is in a significant amazing bull market and it will take a lot to bring us to this level. I am hearing a lot of people becoming bearish on the market and this is what I want to see. Let these people get shaken out. The final note will be when you see a parabolic chart like this quarterly one and it close to all time highs like it was to end last week then you need to shorten the time frames out to look for buying opportunities. When you see a parabolic chart go higher and then pull back aggressively then this opens up many reasons for me to go long, but only if there is good reason for us having potential reason to go higher and in this case it sure seems like a 'yes' to me.