Although GDX dipped below the 37.26 downside target we’d been using, the 18-cent overshoot was not necessarily bearish. Even so, we should be prepared for another leg down. As a practical matter, I’d suggested taking our cue from the lesser charts, which in fact yielded up a mildly bullish impulse leg before the week ended. This is not sufficient reason to bet the ranch on a continuation of the rally, but we can at least give bulls the mild benefit of the doubt as the new week begins. At the very least, they will need to push above an ‘external’ peak at 40.32 recorded last Tuesday if they are to earn more credibility. _______ UPDATE (Oct 6, 8:54 p.m.): Bottom-fish at p=37.33 with as tight a stop-loss as you can abide. If it gets tagged, brace for more downside to as low as 34.60. Here’s the chart.
GDX – Gold Miners ETF (Last:38.10)