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The gold stock sector can get pretty upbeat in a hurry, in an emotional swing in the opposite direction of the previous disillusionment that had come over the sector. It’s an emotional sector, both ways.

So I want to reiterate that if GDX holds above the 34.49 level it is “reasonable” to believe the ETF could continue rising, perhaps even to target (40 +/-). “Reasonable”, not a TA shouting ‘all clear!’ TAs should never give definitive statements as if their art is conclusive. It isn’t, and in this case that is doubly so. From this morning’s video update:

I want to emphasize that it is really just a reasonable expectation that that could be the ‘get out of jail’ point. It’s not like there’s some mystical TA recipe at work here…”

So with that, GDX is eyeballing a close above 34.49 with 1-1/4 hours left in the trading day. If it closes that way let’s consider it a positive going forward, but not a ‘guns a blazin’, full speed ahead!’ kind of signal. It is what we’d have wanted to see in order to consider the prospect that last week’s decline was a quick one within an ongoing rally. GDX is rising today with other markets, and it is not rising on any notable volume. So, let’s stay measured.