“The bear market that started in May 2007 was temporarily held back by a frightened Fed, which pumped multi-trillions of dollars into the system. As a result, stocks have pushed up as they respond temporarily to the actions of the Fed. All of which gives us the confused picture that we have been dealing with ever since January.

Conclusion -- My PTI remains bullish. To turn bearish, a new declining column would have to be a length of eleven boxes, taking it below the little three-box reversal. The arrow points to the box that would have to be filled in order to turn my PTI bearish. That would require eleven declining boxes from the current high.

Silver is now outpacing gold on a relative strength basis. Central Fund of Canada (CEF) is made up of roughly half silver and half gold. The fund actually owns the physical metals. I believe CEF is an item worth holding if you have it -- with silver looking increasingly attractive. If the P&F chart below hits 27, that would be impressively bullish.