Best Financial Markets Analysis Article The gold market is taking a big hit today, despite the weaker economic data that initially triggered a decline in the dollar closer to 1.5000 versus the Euro... Very interesting action, indeed, and not particularly gold-friendly, I might add. Let's take a look at the GDX (Market Vectors Gold Mining ETF)...

This morning the GDX violated key micro support at 50.00, which has triggered downside follow-through towards my next optimal target of 48.20-47.80, which will be near the rising 50-day moving average. Inability of the 50 DMA to contain the weakness will be an indication to me that the 4.5-5.0 cycle low expected in Dec-Jan likely was an inversion -- a cycle high instead. If that proves to be the case, then the GDX is in the early phase of a downdraft that should last 1-3 months. For the time being, let's see what happens if and when the GDX tests key support at 48.00.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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