Yesterday it was noted that the reversal upward would be a good step in the right direction but that a weekly close in that state was needed to ‘confirm’ (to the degree that anything in a financial market can be ‘confirmed’ ahead of time) a reversal to bullish.
Today’s weakness is definitely not welcome for those who either bought the dip or are on auto-pilot bullish. The way these markets are going, anything is possible in-day. But this is just a heads up that a close in the red today would not be what bulls would have been looking for.
While HUI remains above 211 (200 to 211 is the key zone that keeps the target of 251 in play) a weekly close in the red today would mark the first time HUI has closed negative on a weekly basis 3 times in a row. To this point it has only been ‘one and done’ for negative weekly closes. I am not trying to scare resolute bulls, but I am trying to call it as I see it. The green support line is ultra important.