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In this video, we focus on breadth analysis to assess some probabilities for gold miners over the short and medium term.

Gold not outperforming the stock market and the GDX advance decline line's recent weakness argues that the rebound in gold stocks will pause or reverse course soon. The recent action in the advance-decline line did not confirm GDX strength nor was there a proper breadth thrust (to suggest immediate continuation potential).

For GDXJ we highlight similar points over the last eight years when the percentage of stocks above the 20-day, 50-day, and 200-day moving averages were at these levels. Typically there was a pullback. In a bear market as in 2017-2018 or 2021-2022, these pullbacks went to new lows or old lows. However, the end of 2018 example is applicable today.

Video Length: 00:10:26

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