Personally, I could not ask for a better outcome than for the gold stocks to continue dropping while the risk ‘on’ stuff drops because of bad economic news (jobless claims). The one thing out of sorts with the setup is that long-term interest rates are still rising. That is probably pressuring gold and gold stocks.
I like the setup because I did not want to have to decide between ‘ill-fated bounce’ or a rally that did not come from a favored support area, had the gold stock sector bounced today as it tried to do early on.
HUI appears to be entering the capitulation phase of the correction and being a capitulation I’d continue to respect the idea that nice neat chart support and objectives (245-260) aside, the momentum of those in capitulation mode can be more powerful than some line on a chart in the very short-term. So we also have the 62% Fib (230) and if things really get off the hook, a crash retest (using 170 +/- as a very rough objective) as possibilities as well.