yeah silver spot down $ 26.79 at the moment. Looks like second fibonaci (38.2%) resistance broken on the way down of $ 27 area. Next fibonaci level (50 %) $ 25.7. This area is also around the head and shoulders bottom from the head and shoulders pattern in the last 6 weeks. Should see gold test $ 1300 area which is important psychological and technical resistance. If gold can show a significant break, i.e < $ 1275 things might be bearish. I think the odds are low and the $ 1300 area will be a platform for bouncing.
It will be interesting to see if the silver dip will spook people to flood physical on the market. Huge short contracts for March at the COMEX at $ 29 level last time I checked. Maybe JP Morgan might be able to settle in physical and deal a psychological blow to the silver the bugs. I do not think so. I think JP Morgan will be forking out with cash AGAIN at a premium. This will bump the price of silver up again. A similar thing happened last December. I see a bounce in precious metals soon. If gold holds the $ 1300 resistance this should see silver take off from the $25 ish mark I would say.
