When sentiment is extremely negative for an asset class, and yet it failed to stage a proper rally of any type, that should be considered very bad in the short term. It sometimes means that we are setting ourselves up for a climax capitulation... or in other words a crash or a wash out, which should than signals a proper bottom. But in the meantime, maybe more downside towards $1.26 very swiftly and quickly!
Would this also mean that silver to go down swiftly too if the correlation between EUR and silver price holds?
Silver's sentiment is second most negative reading in at least half a decade, while Put buying on the ETF is now at a record high. Finally, Open Interest and Net Long positions by the COT report are at the levels previous major bottoms occurred. It is good to know all of those indicators, but at the end of the day, price is the main indicator. If the tape wants to go lower, it will and the sentiment can get even more bearish. Therefore, all I can say is I hope so... that way I can buy much more Silver!