A very simple update to show that as the stock market’s bounce has proceeded to target, dragging formerly over bearish market sentiment with it, the gold sector has pulled back with its sentiment turning toward over bearish from a previously over bullish reading.
Here is the latest short-term sentiment data from Sentimentrader, showing the gold stocks out of favor (in favor to a contrarian view) while the stock market stuff gets played by newly brave bulls.
A daily chart of HUI shows a logical recovery point where the SMA 50 meets short-term lateral support. A failure at this area probably means a trip to the channel bottom, but the sentiment backdrop is supportive of a hold here.
That’s the current view as I see it. More to come if/as things evolve or change.