GDXJ Gold Stock Crash Review

 

 

Gold stocks with the GDXJ ETF has broken the wave 2 key support and has now pushed well past old wave 2 bottom.  Several other related gold stocks, ETFs,  and indices are getting very close to breaking new lows, as well.  At this time I can still get the rally and down cycle, into a corrective pattern, but another game changer would be if the blue “B” wave  in Minor degree does not hold.  

I have mentioned it before that, the entire gold stock bullish phase is a bearish rally, but still a long way to go.  Replace the A wave top with a 4th wave in Intermediate degree and we could have the makings of a zigzag crash that still needs to break below the $18 price level.    This is the least desired outcome as that would send my ratios into disarray in the short term.   Either way,  the ratios will be expanding all the way.   At that December 2016 low, the Gold/Gdxj ratio hit a bit over 39:1. Today that ratio is 39.53:1, which already makes it cheaper when compared to gold, than the December 2016 bottom.