While the HUI index dinged the upper end of the 230 (+/-) target today, per the monthly chart…
…the HUI/Gold ratio probed below the daily chart’s SMA 200 but closed right back at it. The correction is on its last legs if we are right about the downside targeting and a healthy correction prior to new highs to come (ref. GDX upside gaps waiting to fill). Speaking of GDX, however, it has not filled its gap below 29 so there could well be more short-term downward probing as well. As for the HUI/Gold ratio, we do not want to see a lower low to the December low or else something else (other than a normal correction) is probably going on.
The rally is technically intact and I am trying to keep the technicals a separate thing from the macro funda, which as you know I am watching closely for a potential change of view.
