Wednesday seemed dead-quiet compared to the excitement of Tuesday, so this evening I had to ponder a bit what to discuss. I decided the most interesting thing happening was with the gold bugs index (which, by way of symbol GDX, I trade actively).
Below is the broad view of index symbol $HUI, which shows how the analog has strengthened recently. The key, of course, is to break beneath that lower horizontal line. If we can do that, life gets interesting in a big hurry.
Looking closer, you can see the important event that happened on Monday: we broke that ascending trendline. On Tuesday, we gapped down, creating a nice window at 508.92
Looking closer still, you can see how much damage has been done since February 29th. We came dangerously close to crossing above 554.92, but mercifully we did not. The gold bugs index may seem odd and esoteric, but I am firmly confident that a failure of this index would be a crucial harbinger of a general plunge in equities.
As a final thought, here is the price chart………without the prices. This just shows a standard trio of simple moving averages and points out where I believe we are relative to the prior analogous timeframe.
So that's it from me tonight. I'll see you Thursday morning, and of course we can all anticipate the big jobs report Friday morning with bated bear breath.
