Silver Massacre: Why The Bottoming Process Starts Today

My experience leads me to believe that bottoming is a process and not a one day event. In my post on wed I wrote that the 50dma (Silver EOD contract) had to hold at 40 or we go to 34, I believe this is where the bottoming process will begin. Do I have any specific information to call a bottom, just metrics I use to make an educated guess. Call it years of charting experience.

I know all about the fundamentals but that doesn't matter when this type of selling starts and your emotions are running high and there is no end in sight, so maybe this will help to ease the discomfort .

Here are a few things that lead me to believe we are close to a bottom: Using the SLV for demonstration purpose only:

1. Biggest price drop of all occurred yesterday
2. Largest volume of all the sell off days, puking
3. RSI is as low as it was late January bottom
4. MACD extremely oversold, greater than January

So I hope to see a U shaped move here, lets see a sell off today followed by an afternoon rally, then some back and filling consolidation over the next four trading days or so. Selling the Hedges in am session.