The ‘C’ wave down of an A-B-C bull market correction continues to look not only viable, but now more likely for the Gold Miners ETF, GDX.
The price is dinging the next support level today after failing the daily SMA 200 and cracking the black dotted channel breakout line. But better support, and a better point ‘C’ extension* is lower, at around 32.
While it is not something I’ve been expecting near-term, we should also be aware of all those gaps down lower. They were breakaway gaps of sorts, and launched the bull rally. They don’t need to fill. But it will also depend on how much bear sentiment gets thrown into the sector. When the bugs start puking, you know that extremes are possible.
* The third leg of an A-B-C correction is often the most intense, because it features a final capitulation to the move before real support is found.
