I was traveling today and did not get a chance to look at the markets until later in the evening, hence this delayed post. I was surprised to see such a huge jump in gold and silver prices today as I'd expected a more gradual approach back up to the underside of their breakdown areas. We need to be careful with our shorting strategy here. Even though such a sudden surge could be the start of a breakout above the resistance (formerly support) zones at $1500 in gold and $26 in silver, this is considered highly unlikely at the moment. That $1500 level was widely recognized as very strong support before the crash, and we can assume that there were many buyers near that price who took a big loss when the crash unfolded. These "shell shocked" buyers are now anxiously waiting and hoping to break even by unloading their long positions should we approach that $1500 price area again, and this is the bearish force that should thwart any breakout. We will wait to see tomorrow's early market behavior before attempting any short selling.
The price of crude oil also surged up today, and even though momentum indicators are still strongly bearish, it is considered too risky to short sell this market right now. (Should the price drop severely tomorrow and close below the $91 area, we may reconsider selling short). Out of this market at the moment.