SPX Monitoring purposes: Neutral
Monitoring purposes GOLD: Long GDX on 4/9/20 at 28.96
Long Term Trend SPX monitor purposes: Flat
We are back at the previous high again today and volume is still lacking, a bearish sign. The SPY has made higher highs over the last 3 weeks and the RSI has made lower highs, showing upside momentum is weakening. Market may flip sideways here. The McClellan Oscillator did move higher today, showing there is some strength in the market. It's a game of patience for the short-term. Market has been trading sideways for 13 days. A 13-day consolidation is building energy for the next move. As of yet, the direction of that move is unclear. Will wait for a clear picture.
The McClellan Oscillator will close higher again today near the +240 range and remains short-term bullish. The second window up from the bottom is the 5-day average of up volume to total volume, which again gained ground today, a bullish sign. The second window down from the top is the 5-day average of down volume to total volume, which is falling and a bullish lean. The market did gap open higher this morning, then backed off, closing modestly down today. This is a pattern called an upthrust, which is a bearish sign. The market now could start to move sideways. No clear signal yet.
Over the last several days, GDX broke above the 31.00 trend line resistance. This trend line dates back 7 years to 2013. The longer a trend line has been in force, the bigger the implication. In general, GDX may move higher into the next resistance, which is the lows back in 2012 near the 38.00 level. The second window down from the top is the Bullish Percent index for the Gold Miners index, which stands at 92.31% (92.31% of the stocks in the Gold Miners index are on point and figure buy signals) and a strong showing and has the power to still move higher short-term. When the Bullish Percent index gets to 100% (which happened back in 2016), it's usually a short term bearish sign. The 38.00 range may mark a short-term high and the market could fall back to support near 31.00. Longer-term, it does appear gold and gold stocks will be coming back in vogue. Long GDX on 4/9/20 at 28.96.