Question: From an Elliott Wave Perspective, What do Gold and Silver have in Common Right Now?

Gold weekly 6-27-13

Silver weekly 6-27-13

Question: From an Elliott Wave perspective, what do Gold and Silver have in common right now? Answer: They have simultaneously arrived at the extreme of wave 2 within their preceding extended 5th waves.

Quote from Frost & Prechter, Elliott Wave Principle, 1978-2006, 10th Ed. p 68: (under the heading: Behavior Following Fifth Wave Extensions)

“The most important empirically derived rule that can be distilled from our observations of market behavior is that when the fifth wave of an advance is an extension, the ensuing correction will be sharp and find support at the level of the low of wave two of the extension. Sometimes the correction ends there, and sometimes only wave A ends there. Although a limited number of real life examples exist, the precision with which A waves have reversed at this level is remarkable.”

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