Yesterday’s 30-cent decline may have seemed merely annoying, but it did enormous technical damage. As I’d noted in an earlier tout, a move below the 24.42 low recorded on May 7 would turn the daily chart bearish impulsive for the first time since February. In fact, at Tuesday’s bottom GDXJ had breached another trio of ‘external’ lows near 24.19 recorded in April. Nor is the impulse leg necessarily complete, since even moderate weakness from here could exceed two more lows, one of them a key structural support at 23.46 notched on April 9. All of this is shown in the chart, which you can use to keep score as the bear sets up a possible rally-then-relapse scenario. _______ UPDATE (July 8, 11:51 p.m. EDT): Today’s weakness breached a 22.26 midpoint support associated with a target at 19.75. If the decline continues into the approximate range 21.00-21.50, a rally back up to p=22.26 would be justification for shorting there, stop 23.10.
