Very simply HUI lost support, got flushed hard yesterday and is now on a bounce. The bounce will not prove to be anything other than a bounce until it gets above the 375 neckline area that it crashed yesterday and then continues to follow through. The red dotted line is actually drawn at 382, but the point is that this general area needs to be retaken or the potential for downside to the low 300’s remains on the table.
People can handle this information in whatever way suits them. Some are patient buyers, some are traders and some are hedgers. I am probably going to be some combination of all three for now. One day does not make a correction’s end, but it will become more positive if this extends back above the red line.
Meanwhile, we should respect the low 300’s target that is still sitting there.
