What we’re seeing here is a potential runaway gap (in black oval, above) that could lead to wild losses in the silver pits – Thursday’s action will prove conclusive on that score. In the meantime, the technical damage evident on the chart is great.

First, price action has gapped below all the major moving averages.

Second, all but the long term moving average (411 day) have rolled over and are now trending lower.

Third, roughly twelve trading sessions back, MACD confirmed an RSI dive below the all-important ‘waterline’. This remains a bearish indication so long as both items stay below that benchmark (in red, above).