Inverse Looks

As equities continue to bounce off their morning lows, it is worth noting the inverse relationships in Treasuries as well as the precious metals miners. Both TLT and GDX had gapped up this morning, but as the SPY just filled its morning gap from the open we have an interesting test for miners for the rest of the afternoon. 

On the 5-minute GDX (ETF for senior miners) chart, below, note the fade down to yesterday's close. 

If this rally in the broad market is simply setting up an afternoon fade of its own, then I would expect gold miners to respond in kind by finding buyers right where they theoretically should, down after this gap-fill.

Treasuries are a bit of a different story, as TLT is gapping up today after a prior steep uptrend, which has the makings of a more standard reversal day if it closes here (after a fade) or lower. 

I will update those ideas and plenty more for Members in my usual Midday Video.