…and 2009 suggests both metals will meander higher from this correction, breaking out in a parabolic run higher after around one quarter (~11 weeks):
The biggest difference between 2009 and today is the short term chart patterns. In 2009, a short term falling wedge formed over almost a full month, and this provided the ultimate support for the longer term Cup & Handle. That means GLD might slip a bit lower into a vertex of this falling wedge. So, I’m a buyer of SLV if we get a bounce; I’m a seller if GLD breaks down below $158.30 (38.2% Fibonacci support, as in 2009) on a closing basis.
²Sequestration will cost ~3.7% of GDP, so = 0.037 * $15.59T
³A deal might reduce the cost to ~2.0% of GDP, so = 0.02 * $15.59T