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GDX/GLD? Ratio Leads The Way For GDX
By Tim Ord | May 23, 2017

• SPX Monitoring purposes; Sold long SPX 5/23/17 at 2398.42 = +1.76%; Long SPX 5/17/17 at 2357.03.
• Monitoring purposes Gold: Short GDX on 5/22/17 at 23.20.
• Long Term Trend monitor purposes: Neutral.



Above is the weekly chart of GDX. Bottom window is the weekly GDXGLD ratio. GDX/GLD ratio leads the way for GDX. The weekly GDX/GLD ratio retraced near 90% of the rally form the December low, where GDX just retraced 61.8% showing that GDX/GLD ratio is weaker than GDX. This condition suggests for GDX to catch up to GDX/GLD ratio, GDX must fall. The second window from the top is the weekly RSI for GDX. RSI >50 is bullish for GDX and < 50 bearish. In general the weekly RSI has been below 50 since February and remains bearish. Notice that the weekly Slow Stochastics is also below 50 and in bearish territory. Short GDX on 5/22/17 at 23.20.

http://www.talkmarkets.com/content/us-markets/gdxgld-ratio-leads-the-way-for-gdx?post=136269

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