GDX did indeed roll over and crack the SMA 50, as we had been watching for. Then there was a day of bouncy relief before today’s renewed downside. The A-B-C projection not only survived, but it came to the fore as we noted it would if GDX lost the 50 day average.
Now the Gold Miners ETF is at the 1st logical rest area at 90 (+/-), which holds a small shelf of lateral support from December. Regardless of what it does next, it was probably always going to at least pause here to think about it.
The stock market is also trying to gather itself and we’re one news item away from bullish reversals in markets. But as noted, I am going flying by the seat of the charts and am trying to remain strict about that. I am not going to out-think Trump or the IRG. I am going to stay balanced. In this case, that means hedged.
If GDX holds support here, great. This could be all there is to the downside. However, right or wrong, my lean is toward more downside, to the SMA 200 (80.75 and rising) if not a ‘C’ low.
