The soul-sucking correction from the August 2020 high at 65.95 has had no fewer than five false starts, stopping out bulls at prior lows each time. This has been dispiriting to the point of despair, although it has yet to negate the bullish implications of the spectacular impulse lag that bucked up our spirits in the first place. It exceeded two valid ‘external’ peaks, making it very difficult for Mr Market at his nastiest and most determined to wreck the pattern by stopping out the ‘C’ low at 19.52. How far he will go trying to screw bulls is not predictable with any great confidence right now, but the best possibility I can foresee would be an upturn from 31.13, a ‘voodoo’ level’; and the worst, from the D target at 25.35 tied to A=51.92 on April 18. _______ UPDATE (Sep 8, 10:51 p.m.): Today’s feisty rally created a bullish pattern on the hourly chart that points as high as 31.05 over the near term. First, though, bulls will need to blast through p=30.18. The pattern looks quite serviceable for ‘mechanical’ buying on the way up, provided Mr Market gifts us with the punitive retracement needed to make this possible.
GDXJ – Junior Gold Miner ETF (Last:29.94)
