Gold Miners Breaking Out?

Although the SPDR S&P 500 (SPY) has climbed to highs not seen since late-December, 2007, a more dramatic price move could be unfolding in the Market Vectors Gold Miners ETF (GDX).

Let's notice that yesterday and today, the price structure has erupted from its 5-month base-like pattern, which has taken the form of an upside breakaway gap--just the type of behavior that denotes the initiation of a powerful directional price move.

In addition, let's notice that the BIG "W" bottom pattern created sufficient combustion to propel the GDX above both its year-long, down trendline and its declining exponential 200 DMA, which are signs of a developing change in the heretofore dominant down trend.

My medium-term upside target zones off of the GDX "W" pattern are 54.30/60 and 57.80-58.20.

At this juncture, only a reversal and plunge beneath 48.00 will neutralize the developing bullish technical set-up.