RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
Gold versus its miners
Large down day Thurday followed by breaking recent support Friday on large volume (at least for the GLD ETF I'm tracking [1]. I'm not surprised by the gold price drop as it looked over-extended. The breadth calculated from the gold mining stocks has plunged. Not so obvious on a 2 year duration chart, but this drop started two weeks ago, but really gained downward momentum last week. Notable points are, numbers of miners abouve their 20, 50 and 200 day EMAs have plunged [11, 12 & 13]. The silver and gold cross indices [14 & 15] have also dropped, so the numbers of miners with their 20 day EMA > their 50 day EMA and their 50 day EMA > 200 day EMA is have dropped significantly. The 1% A/D line has bounced down from its zero line [6]. So gold has started a pullback and miners are likely to do the same.