Consumer sentiment dropped to a 7-month low, but it came in above estimates. Gold and the Dollar continue in their sideways consolidations that began Tuesday. Neither has done enough to confirm or deny a breakdown.
-GDX- I’m curious if this bear flag is a little too obvious. It seems like the perfect setup for another breakdown. I imagine bears piled on more shorts after Tuesday’s bearish engulfing day. The setup looks a little too perfect. Occasionally, these ideal patterns turn out to be a trap and prices break the opposite way. The odds for a “False Flag” will increase greatly if GDX closes the day above $18.90. Especially, if miners strengthen after the dreaded 11:00 AM selloff period.
Remember, US markets are closed Monday for Labor Day.
I’ll update again after 1:00 PM