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Has the GDX finished a correction?


Both the S&P 500, and the Market Vectors Gold Miners ETF (GDX), have been moving in tandem since July 24, when the latter established its double bottom low, with its May low, after which it took off into a powerful 37% advance into last Friday's high.

Let's notice that, although the SPX and the GDX climbed in tandem, the GDX rally extended one week beyond the peak in the SPX, which certainly is a display of relative strength compared with the GDX performance during the prior10 months.

Nonetheless, both ETFs have been under pressure for at least the past week, and both exhibit sharply-declining daily RSI, which suggests to me that a tempting re-entry into the long side of the GDX should be delayed, while we give the benefit of the doubt to another loop lower towards 50.00-49.40, based on the juxtaposition of the daily RSI.

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