While many people couldn't care less about the stock market right now as end-of-summer vacations are in full swing, there were some real fireworks to be seen Tuesday. Apple (AAPL) soaring and then crashing. Facebook (FB) collapsing. The dollar plunging. The major averages pushing over their 2012 highs early in the session before being smacked down into negative territory. And all the while, with everyone distracted, precious metals continued to launch out of a long multiyear downtrend.

With the S&P 500 perched right below its 2012 closing high, the bulls are at a decision point: Either they push over the bears' defensives at 1,420 on better economic data, signs the Germans and the Spanish are opening up to the idea of a bailout in exchange for reducing Spanish borrowing costs, and hopes of aggressive central bank intervention -- or they succumb to the market's short-term overbought condition.

I think investors should be looking for additional upside progress for three big reasons.
For one, precious metals are rallying on a combination of higher inflation expectations as well as weakness in the U.S. dollar. Both are positives for the "risk on" complex of stocks, commodities, and yes, precious metals.

Also, cyclical, economically sensitive stocks continue to power higher on a scale not seen since January. You can see this in the way financial, retail, materials, energy, and tech stocks are leading the charge while investors largely ignore consumer staples, health care, and utility stocks. That's a sign people are trying to get more exposure or "beta" to the market; and they aren't really worried about a retrenchment in overall economic growth.

And finally, on a purely technical basis, the S&P 500's directional indicator -- which was created by Welles Wilder in 1978 -- has moved into solid uptrend mode for the first time since January. Before that, uptrend modes were triggered in early and late 2010 and in the middle of 2009. All were associated with smooth, steady low-risk rallies.

I continue to recommend my readers and newsletter subscribers focus on precious metals and related mining stocks until the bulls resolve the impasse to the upside. Examples include the Velocity Shares 3x Silver (USLV), up nearly 30% since I added it in late July, and First Majestic Silver (AG), up nearly 18%.

In the Edge Letter Sample Portfolio, I'm booking profits of nearly 10% in Apple and Market Vectors Oil Services (OIH).

Disclosure: Anthony has recommended USLV and AG to his newsletter subscribers.

Check out Anthony's investment advisory service The Edge. A two-week free trial has been extended to MSN Money readers. Click here to sign up. Contact Anthony at anthony@edgeletter.c​​​om and follow him on Twitter at @EdgeLetter. You can view his current stock picks here. Feel free to comment below.