GDX gapped lower this morning, went down until 10:24, and has been trading in a range since then. Significantly, GDX opened at 52.55 and headed down from there. This is notable because 52.66 would have been the bottom of our ideal flag and it opened below that.
The possibility of the double top and a move to new lows is now in play, however, it still has a day or two to recover and salvage the big flag so don't count it out yet. We could end up with a flag day and a buy very soon and it would head up again. We could also end up with a hammer today, but I wouldn't trust it, if it closed below 52.70
I would like to see it head up again quickly, because GDX is set up quite closely to the way it was in June of 2008, a month before the huge market meltdown signalled a very bad economy to come. We could do without that again.
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