GDX has crept a little higher today, but has still not broken out of its down trend channel. Yesterday's hammer candle was not good and today it appears to be forming a new hammer slightly higher than yesterday's. The trouble is, a higher hammer is a hanging man candle. The price action has been very choppy today and appears to be just testing its break down that occurred yesterday. It is hard to see how a good flag could form today, so a buy is unlikely.
QQQ has risen nicely since yesterday's sell, but also appears to be testing the break down from its two month trend line. The MACD has a wider divergence today than it did yesterday, in spite of the rise in prices. I still hope that a flag will form here and allow a continuing rise to occur thereafter, but I need to wait for a positive MACD and either a trend line break or a break to new highs before buying again.
Happy trading.
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