Bear Flag … Bear Market

Bear flags post in a bear market

Bull flags post in a bull market

Right?

One would think.

It’s different though, if you’re a rabid ‘not-right-in-the-head’ gold bull.

The professional does not care which direction the market is heading. The only important thing is, and to paraphrase Livermore:

‘There’s only one side of the market to be on … and that’s the right side.’

GDX has posted and tested a bear flag.

At this juncture, it’s heading lower … possibly to test between 15 – 17, as was just mentioned yesterday, by Van Metre (time stamp 10:00).

Conversely, in the general equity markets, there’s reversal action with the S&P, Dow, Russell, all lower.

On top of that, bonds are in their own reversal (up again in the pre-market) as well as the dollar.

In the Van Metre link above, in addition to comments on gold, he also sates ‘the market is not prepared for a bond (and dollar) reversal.

When markets are sure of one thing and the other happens, it’s very ugly.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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