Investor sentiment flipped from euphoric to depressed in a matter of days.
Shortly thereafter, Silver's short interest reached a fresh all-time high. That might sound bearish, but historically it hasn’t been.
In fact, every major Silver rally of the past few years began when short interest peaked. It has been one of the most reliable buy signals for years.
And then last week, we noted that a warning shot had been fired in precious metals. Our key risk appetite ratios were rolling over and breaking key levels.
Moreover, the majority of stocks in the Philadelphia Gold and Silver Index $XAU were in short- to intermediate-term downtrends.
It was a do-or-die moment for the bulls...
Last week, we learned that the buyers weren't willing to lie down and die. Not only did they get off the mat, but they also punched the bears in the face so hard that their jaws turned sideways.
Let’s talk about what happened.
First, we need to start with the most important chart:
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