The Perfect Mask: Eyes Wide Shut for Dow 20,000
All of the eyeballs on Dow 20,000 today may very well be the perfect mask for this throwback or retrace in the gold miners after the progress they made this week.
Specially, in terms of discerning whether we have a quality, lower risk long entry on our hands, we want to gauge how GDX handles the $22 level from which it broke.
On the updated GDX (ETF for senior gold miners) daily chart, below, you can see the harsh shakeout today after several days of promising rallying to begin 2017. I want to see if this move is just that--A shakeout which quickly regains its footing off $22 for a new long entry into next week.
Recall that $22 is a critical price level for GDX which actually stretches back to its 2008 crash lows. Indeed, price has memory.
As for stocks, I will follow up with Members in my usual Midday Video.