GDX, daily
Summary
With a truly historic collapse in both Gold and Silver commodity prices, GDX was always set to collapse, but a further 10% drop is indeed somewhat scary. Trading volume was extreme, with 73 million traded, verses a typical 10 million.
The big 30 fails
What is clear, with the break of the big $30 level, there is now empty air to the 25/20 target zone, a level that I have been seeking for more than a year.
The incredible thing about all this is that whilst the miners are now down over 55/60% from the highs of 2011, the US equity market is only a few percent down from the recent highs.
If the main US markets decline into May..and June, will GDX even be able to hold the low 20s?
It will be interesting to see where we are trading in late May/early June, which is the kind of time frame where I expect a mid-term floor to be put in.
