Gold Miners on the Move

Apart from what we discussed about the relationship of the Market Vectors Junior Gold Miners ETF (GDXJ) and the SPDR S&P 500 (SPY) on Tuesday evening, what is interesting today is that the heretofore (and more often than not) inverse relationship between the GDXJ and the SPY has morphed into a direct relationship.

That is to say, both the SPY and the GDXJ are climbing today, although, more to the point, the former is up about 1%, while the latter is up 4.4% so far today.

This suggests that money is flowing into the under-owned sector from the other sectors that experienced a "mature, perhaps outsized advance" since the start of 2012.

The GDXJ will hit initial resistance at 24.20/40, and I will be interested to see how the initial upmove off of a potential double bottom handles the confrontation with initial resistance.

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