Oh, My !!!
You have to wonder; will this nonsense be the excuse for a market collapse?
Looks like the gold miners (GDX) are not waiting around to find out.
Yesterday’s ‘gut-check’ counter trend move, was summed up with the following quote:
“Such a move, is typically what happens just before a market gets underway in earnest.”
Today, the Senior Miners, GDX, reversed and closed down a solid, – 3.05%.
However, the main topic for the day is the dollar and specifically, the UUP tacking fund.
We’re just a few days shy, where a year ago, this site identified the dollar was in position (potential does not equal guarantee) for a sustained upside reversal.
The weekly chart of UUP shows where we are.
The magenta line is resistance and the blue line is support.
The next chart highlights the current action.
If the rally is to continue and if this market action was happening at some other (non-Omicron) time, you’d expect an amount of sideways oscillation before more upside; maybe several weeks or so.
It could happen that way … or, behind Door No. 2, we might have some kind of ‘event’ launching the dollar over the resistance area.
Farther down on the list, is downside reversal.
However, at this point, gold (GLD) and the miners, are saying it’s the lower probability choice.
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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