GDX – Gold Miners ETF (Last:40.33)

Bulls have plenty more work to do if they want to turn Friday’s strong rally into something meaningful. They had a running start from a strong overnight rally in physical that allowed GDX’s handlers to open this vehicle on a large gap, and to rack up a stupendous gain of 5% on the day. The move was impulsive on the hourly chart, and that’s encouraging. But the presumption of a bull market with a shot at  51.54 will depend on whether buyers can push this rally, without a visually significant pause, above a midpoint resistance at 44.31, and thence past an external peak at 43.60 recorded in mid-September. Here’s a graph that shows it all. _______ UPDATE (Oct 14, 8:03 p.m.): Today’s pop through p=40.89 portends more upside to D=42.31, although it could entail a struggle. We’ll want to see GDX close for two consecutive day’s above that Hidden Pivot, however, before we infer that more upside is likely to the 43.60 benchmark noted above. Here’s the chart. _______ UPDATE (Oct 15, 6:02 p.m.): A struggle indeed! Hardly seems worth the stress.