NEW YORK (TheStreet) -- We saw more consolidation and chop for markets and stocks this past week, while even good earnings numbers aren't helping stocks move higher.
We started to see some weakness come into the market Thursday. This has begun to rock the bulls.
I don't think we will see too much of a correction -- rather, just more chop, as we build a base leading us into the fall, a seasonally strong time of the year.
I'm looking for some dip buys now, but they may only be short-term trades of a few days.
More chop should dominate August, so I will likely remain very selective in trades and take small positions.
Gold tried to break down Thursday but saw some strength Friday, which saved the day.
So far, gold is holding up, but is not looking very strong overall.
Gold lost 1.02% this past week and is so far holding up, but barely.
This $1,290 to $1,280 area is key to hold, and a move above $1,310 would signify the potential for more strength.
I'm not so sure gold can hold up here, but you never know.
It's still acting very weak and choppy and, as a result, is very dangerous.
For now, we remain choppy, as has been the theme. But the strength we saw Friday is positive.
For the moment, I have no interest in trying to trade gold.
Silver lost 2.21% and looks much weaker than gold.
So far, silver is holding the 200-day moving average, but it does look ready to roll over further now.
Support levels are below at $20, $19.75 then $19.25.
While Friday was positive for gold, it was very negative for silver and it looks like silver could be taking the reins now to lead gold lower.
A move and close on a daily basis under $20.25 would confirm this, and gold should then follow silver lower.
Platinum lost 1.15% for the week and is holding on by a thread for now.
A great bounce off the 100-day moving average is positive, but the chart does suggest we have more to go on the downside.
The next support area for platinum is $1,430 and that could be hit in the week ahead easily.
Palladium fell 1.61% and has to hold $860, or the next stop will be $840.
As strong as palladium has been, if gold is weak, palladium will follow.
Palladium has a bit of a double top in place now, and with Friday's weakness, the double top is almost confirmed. A break under $860 will confirm a double top.
All in all, precious metals are looking weak.
I still have not seen that blood-in-the-streets sentiment that so often marks major lows for the precious metals, and it could take quite some time for that moment to come.
With stocks still very strong in the big picture, the precious metals can remain weak for another year or more.
The longer-term monthly gold chart (not shown) does suggest to me that the $1,000 area still needs to be tested before we can really consider gold ready for a trend change.
Thank you very much for reading. Warren Bevan at http://wizzentrading.com
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.