SPX daily chart shows what I meant this morning about testing the breakout. We should understand that some relatively weak sectors never did break the equivalent of SPX’s green dotted line, but this is a headliner and support extends down to 2680. Short of a failure of that area I’d still be careful about a bear stance.

We noted the pullback parameters on GDX and GDXJ this morning. As of now they still hold. But here are a few internal views of the precious metals sector.

HUI/Gold ratio is still intact and supportive of the bounce.

Silver/Gold ratio is still intact and supportive of the bounce.

But I stress again that the sector’s fundamentals are not complete and also each of the two indicators above, while supportive of the bounce, are and have been in larger downtrends.