So Far So Good - April 3, 2012

The PM Money Flow is getting stronger and stronger. It closed above a new protection level for the EOD GDX robot. A daily close below the 0% line -porosity (-0.088% today) would cover and reverse the robot position to short.

The resistance clusters are also gaining strength and the important Quarterly Pivot (51.84) is part of the first cluster. If it is broken decisively to the upside and holds thereafter as support, it could promise a positive 2nd quarter for GDX. More likely, it could act first as serious resistance and require repeated assaults to be taken over. That’s when monitoring the MF will be most instructive to gauge the possible outcome. In the short term a pullback limited to Weekly pivot (49.51) and 5-day VWAP (49.45) would hint at a serious attempt to avoid revisiting the lows of last week’s trading range.

There is no secondary entry advised for today. Remember also that this is a shortened 4-day week (Good Friday is a market holiday) and trading moves tend to be faster than usual during such weeks.
Billy

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We have the pullback testing the Weekly pivot (49.51) area, with weakening MF but positive divergences in relative strength vs. SPY. The overall market is weak but GDX is outperforming SPY since 10:45 am.
To secure a progress in the nascent uptrend, we need to see a reversal from here soon to avoid revisiting the lower end of the trading range.
Billy