GDX has mainly been following the gold price in the past weeks and has gone nowhere since the Buy Oversold signal.
With gold being pushed down today on a USD resistance break, it is normal that gold miners investors give-up.
I was myself ready to by the silver sector on Monday/Tuesday, but there was too much negativity around.
The question is now: what about the GDX short signal that was just issued?
We can see below that the EV pattern on the US$ and the Euro show that we might try a trend reversal tomorrow.
We can also see that the Yen is not negative for the day and that oil bounced back up.
This means that we might have a reversal in gold tomorrow IF the US$ pulls-back somehow.
I would prefer to short a bounce than short weakness in GDX.
One thing is certain: gold is not a leading market. It is a tiny market that follows the moves in the big currencies market.
Pascal
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