The percentage of GDXJ stocks above the 200-DMA hit 6% Friday. Breadth is fully oversold on all time frames. The vertical lines show similar breadth readings.
The rebounds in 2022 that led to lower lows but soon a significant bottom reached the 50-DMA, which currently is at 117. GDXJ closed at 95 after reaching the summer lows, an area of strong support.
GDX still has 9% downside to its summer lows. Its breadth indicators are not quite at full extremes but are very close. 10% of GDX stocks closed above the 200-DMA.
Below shows the percentage of GDX stocks that have a rising 200-DMA. Its 10% now. Many readings at 10% or lower led to significant lows.
These two breadth indicators c/o StockCharts are not yet at full extremes.
Metals closed at $3874 and $49, after losing support at $4000 and $54.
Gold has strong retracement support at $3600-$3700. We have noted $45-$47 for Silver.
I don’t think we are at “the bottom” yet, but a rebound is likely to begin within a few days. (Note: individual stocks can and will bottom at different points.)
Fundamentally, the market is still anticipating two more hikes. Gold could sustain a rebound when the market senses the next rate hike is the last.
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