In yesterday’s post on GDX I mentioned multiple signs that the candles made trying to warn us of the upcoming events. Today’s action just confirmed the concerns.
A very strong bearish Maribozu candle gapped down below both the 8 and 20 EMA lines on the daily time frame and this is not a good sign at all.
Tomorrow I am expecting a continuation of today’s action. If the move is strong enough, there is a chance of making a daily 8/20 EMA cross. It would align all daily MA/EMA in the most bearish way: 8 below 20 below 50 below 100 below 200.
The weekly candle does not look very encouraging so far. Though the week has 3 more trading days, the odds seem to accumulate on the bearish side.