“Any price advance from here before a correction may be associated with negative divergences on McClellan. That may be OK and price may ignore it but it makes new positions vulnerable to snap pullbacks and corrections”
That proved to be a spot-on assessment and GDX behaved exactly as that
It did a bit of more advance and made divergence on RSI
Notice that GDX could not overcome the broken 2008-2011 uptrend line. Also notice that it ran to an area between the broken trend line and the top line of the black fork and then dropped. This is very routine technical action to me.
Now, if GDX is really hot and if we are dealing with a super-charged, super-bull gold environment, then it should soon stabilize and run up and make a higher high.
Daily MAI had a nice run up, but it has been correcting
Notice that weekly MAI did not get positive during the recent swing up. That is not very good and a if the daily MAI drops to negative.
So, I shall keep an eye on price against support and on daily MAI to see if they stay positive as this correct correction runs its course
Metal ETFs, GLD and SLV have held a lot better than mining ETFs, but, the fact that miners are correcting may be a warning that metals may soon see correction as well .......
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