Upside Reversal for GDX

Early weakness in GDX (Gold Miners, ETF) reversed from below Monday's low at 23.54, and from beneath a break of the up-sloping 20 DMA (23.55),  to above yesterday's high at 23.83-- to an intraday high of 24.00, which has set up the potential for a Key Upside Reversal Day.

This morning's weakness could have inflicted some serious damage to the near term set-up. Instead, today's upside reversal looks like GDX likely ended a 4-5 day pullback from 24.49 to 23.54 ahead of the start of a new upleg-- or at least a run at last week's high.

One look at the BIG picture of GDX shows the strange, but well-defined 11 month sideways range between 21.00/25 on the low side and 25.50/70 on the high side. When placed into the larger context, today's upside reversal action might mean very little unless GDX can climb and sustain above 24.50, which will argue strongly for continuation that challenges the 11 month resistance zone.

While we could get a bit excited about today's action in the Gold Miners, perhaps we should also reserve judgment to see if the move can generate any meaningful upside follow-through.