In the last post I pointed out the "crawling" pattern on the US dollar index. I noted that often this pattern leads to a swift breakdown.
We have the same thing occurring in the mining stocks as the GDX has broken up after crawling along the underneath side of the 50 DMA.
I pointed this out to subscribers several days ago in one of the nightly updates. I think the action in the precious metals sector is warning that the dollar will break down soon. When it does I wouldn't be surprised if the GDX tests the 200 DMA.
Market Direction Change
2 weeks ago