We should watch volumes today to see if there is enough conviction to get GDX, GDXJ and high profile individual miners above the moving average clusters they recently fell below. I’ll try to get a review of that after the market closes, assuming today stays positive.
Silver continues to lead gold and that remains a positive.
I am not sure what is behind this move other than maybe it is just time, as the correction has dug deep enough and caused doubt among enough people per the speculated upon right side shoulder making in this post HUI Gold Bugs Index Symmetry and the more detailed analysis in NFTRH 284. Strong employment data is not a good reason for a precious metals rally.
To review, the plan is for a new recovery high (or 3 up) to come next, upon completion of this short term correction.
Still, with the big employment number coming on Friday, we should probably consider this a bounce until it gets through the moving averages with some volume just to make sure our expectations are not over done.
