The dollar rallied sharply between 9:00 – 9:30 AM. Prices reached the 94.90 level. The morning push broke above the 14-day cycle trendline. However, prices would have to close above 94.94 (currently 94.77) on a daily basis to support a new cycle advance.
Gold declined from $1212.80 to $1202.10 as the dollar rallied. Prices (currently $1206.20) have broken but not closed below the 14-day trendline. Gold has to maintain the $1202 – $1205 level to prevent a decline to $1198 – $1200. To the upside, prices would have to exceed the $1212.80 high to prompt another attack on $1220.
-GDX- Miners blasted below Tuesday’s low and immediately tested the short-term trendline. Today’s close is vital. Closing above Tuesday’s low ($18.80) would support the potential for more upside. Whereas, closing below $18.80 would likely set the stage for a bear flag breakdown to new lows.
Miners are trying to reverse. The price action after 11:00 AM will be telling.