SPY & GDX: Still More Upside?

At the moment, both the SPDR S&P 500 (SPY) and the Market Vectors Gold Miners ETF (GDX) are moving in directional tandem, unlike their inverse directional movement prior to early June.

Both hit early-September highs that were confirmed by daily RSI momentum, and both appear to be in near-term digestion periods ahead of upside continuation.

Although a "next upleg" likely will create serious momentum divergences indicative of a forthcoming series peak, my optimal target zones are 148.70-150.80 for the SPY, and 57.20-58.50 in the GDX.

Of course, when it comes to the gold miners, they have been so hated, so under-invested and under-appreciated in today's worthless paper-asset world, that the gold mining sector could become the equity market's go-to safety, hard asset repository in the weeks and months ahead.

That propels the GDX far beyond calculated technical targets.