The S&P 500 is bouncing at a logical area. Other items, like the Dow and NDX are too and the Russell 2000 is right at must-hold support. The plan for the stock market has not changed but that plan is for September and beyond to grind out a top. This is August 18 with the market bouncing around amid more volatility. There is much talk all over the media about a Hindenberg Omen and bearish sentiment may have gotten ahead of itself again. We’ll see.
On HUI, there was the break upward… and there was the head fake and reversal, at least in-day. As of now HUI remains below the resistance area as noted in the last update.
If the broad stock market gains relief again (it has continued to lean over bearish sentiment-wise) and the gold sector remains contained (it has continued to lean over bullish sentiment-wise) then the setup would probably fail or be delayed.
If both of the above conditions (stock market bounce, HUI below resistance) look to be in place to close the week I am going to raise yet more cash, mostly avoid shorting (other than the ongoing euro short) and do some selling (KL.TO, now well above our long-standing target of 14, comes to mind) and go into the weekend very cashed up as we head out the back end of August.
You should do as you see fit per your positioning and orientation. But the above gives a snapshot for all of us in the middle of this last day of a somewhat wild week.