A slightly abbreviated Key ETF segment due to ongoing time commitments over the mid summer weeks. Just a snapshot in time, picking up where we last left these charts a few weeks ago…
GLD is at a valid support level for the anticipated pullback. Lower support is noted, in the event things get woogly here during FOMC week. Over bought is certainly no longer an issue for gold.
SLV is also at its first level of valid support and is no longer over bought. More support is at 19 +/-.
GDX broke above the short-term downtrend line on the little toppy looking pattern. Key short-term support is 26. That level would decide whether a more biting correction (to the 24’s) would take place. Over bought has been worked off and RSI is still 50+.
GDXJ failed to hold its similar short-term downtrend line breakout. Key support is around 41. Watch GDXJ for leading short-term indications.
DBC does not look good and commodities as a whole continue not to be of interest at this time.
DBB came very close to the NFTRH+ target of 18.50 and turned down. With the price drop and RSI turning down from over bought, this one looks suspect at at this time.
USO looks worse than suspect, it looks bearish.
SPY looks suspect, but is still trying to hold its dueling wedge lines as support.
SMH is trying to bounce at the SMA 50 after the sector put in some Hammer candles 2 days ago. It looks like it wants to eventually (pending bounce?) work down to the noted support areas, including potentially the big picture breakout support line.
EZU is bearish. SMA 200 will try to provide support.
FXI hit target; trade over. Very over bought as the momentum guys pile in.
Bottom Line
- Precious metals correction is not yet indicated to be over, which is different than saying it is not over. We’ll watch short-term parameters, but the plan continues to be that this is a pullback within a much larger bottoming process.
- Commodities are getting worse, not better despite certain items (like RE’s, Palladium and even Uranium) getting bid to varying degrees. If oil continues to weaken, that would be mining-positive.
- Stock markets are suspect all around until short-term conditions clear. China 25 is over bought, US is weakening and Europe is flat out weak.
