Unfolding Quickly

The past two months have seen the miners, GDX, GDXJ, SILJ, reverse down, hit a low, then upside test and now, reverse down again.

For years, the big picture analysis of this sector has been consistently bearish.

Sure, there we upside opportunities but the (more) dynamic moves were to the downside.

All of which, brings us to now.

Senior Miners GDX, Weekly

A sideways market is a bear market; that’s what we’ve had for over four years (not advice, not a recommendation).

A ‘terminating wedge’ taking a year to form has broken to the downside.

Then, an upward recovery (test), that reversed last week, continuing to the downside this week.

Looking to the left on the chart, we see the ‘repeating’ channel.

This notation shows a down-channel of this type has happened before. The market itself, has set its own precedent.

At this juncture, this week’s right -side channel line is declining at approximately -95%, annualized.

Decide for yourself if that type of trend constitutes a ‘crash’ (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279