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Is GDX Weakness The Start of a Bear Move, or a Healthy Correction Within a Bull Phase?


 

After breaking key-August support at 25.59/61, the Market Vectors Gold Miners ETF (GDX) has pressed into and below the unfilled gap area left behind on June 19 at 25.14–24.78.

Right now my pattern work indicates two things: 1) that a new upleg within the 14-month base-pattern formation started at the May 29 low at 21.92, the first phase of which ended at the July 10 high of 27.63, and 2) all of the action since July 10 represents a correction of the prior up-phase that when complete, should resolve in the emergence of a new up-phase that projects to 30.00-31.00 next.

My optimal corrective-target zone for entering new long positions is 24.30-23.70.

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