Last week the DOW hit resistance about 3 times after which the investors started to panic again. I believe this could be a wave 1-2 in Minor degree, but the DOW needs to decline much further to show us that the stock bears are in control.
Friday ended with a sharp spike to the downside but we will see if that spike holds any serious price level.
We also finished a golden cross but it may mean nothing as a death cross could follow just as fast.
GDXJ is an ETF that tracks the Junior gold mining companies and it’s also lagging behind gold as the July 2016 peak has not been exceeded. GDX is just shy of breaking out while gold has soared.
GDXJ is also in a bear market rally which started in early 2016. A couple of trendlines can point us to an early “C” wave price target. I still need wave 3-4 and 5 to play out which can produce insane extensions.
The Gold/Gdxj ratio is sitting at 38.26 which is not that cheap but is still a far cry away from the expensive 10:1 ratio.