This morning gold was holding steady before the market open until the jobs report was released at 8:30 and gold plunged. It stayed down until after the market open, bringing GDX down to the support of a low from 15 days ago. The support held as gold reversed and shot up higher than yesterday. GDX also went higher than yesterday on the reversal, creating what is, so far, a bullish engulfing pattern.
There has still not been a full day flag on this move up from the bottom, but if it keeps going up it will soon encounter the 50 day moving average which could trigger a flag, either above or below the average, depending on the buying strength. I will continue to wait for a full day flag for a safer entry point.
QQQ barely hit a new high this morning with its MACD still negative. I still think thee is a good chance of getting a little more consolidation here before any solid move up and a new buy signal. Remember the Federal Reserve meeting is on Tuesday, and that may set the direction of the markets afterward.
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