Gold has broken below support at $1310 this morning and the GDX is set to open near a crucial area of confluence:
The gold miners have now shed roughly 20% since the August peak and we are now entering the most bullish month of the year for sector. Although gold has fallen four consecutive years during the month of September, going back to 1975 September has been a very strong month historically:
Gold and the miners are facing an interesting moment; either buyers are about to show up and support near $25 on GDX and $1300 in gold will hold OR the correction is about to transition into a much deeper bear market cycle. With the Labor Day weekend and the seasonal transition into the fall my intuition tells me that a tradable bottom is close at hand (1-2 days).
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