Metals and Miners are up today after the abysmal retail sales numbers this morning. News driven events like this typically run out of steam relatively quickly.
The potential bull flags that started in late January should have broken higher by now. Consequently, I think we will see more back and forth price action with a downward bias. That could lead to a quick and sharp break lower in the coming days. Gold (April) would have to close above yesterday’s $1321.70 high to reverse the mounting short-term momentum.
-GDXJ- Junior miners are forming a small wedge consolidation that should resolve to the downside – initial target $30.75. A daily close above $32.50 would invalidate the pattern.
Happy Valentines Day