Miners held up well, relatively speaking, as gold declined in May and June. In July, psychology shifted, and miners began overreacting to the downside. For example, gold declined just 0.75% last Thursday, but miners finished 3%+ lower.

To support a meaningful bottom, miners need to begin overreacting to the upside. We see a little of that this morning. But as you know, it’s not how you start…its how you finish.

Since July, morning rallies usually fade after 11:00 AM. Consequently, I’d like to see persistent strength throughout the day and large volume. If installed, then perhaps investor psychology is tipping back in gold’s favor.

I’ll update again after 1:00 PM.