Cycle Trading: Miner Break Through

The Miners broke convincingly above the 200 MA on Tuesday.

GDX

Tuesday was day 23 for the daily Miner cycle. The new high on day 23 assures us of a right translated daily cycle formation.  However, 23 days places the Miners in their timing band for a daily cycle decline.  There is a bearish divergence that is developing on the True Strength Indicator that we normally see as a cycle nears its peak.  The large 226 million Selling on Strength is another indicator that the daily cycle is near its peak.  Therefore we are watching for a swing high accompanied by a break below the accelerated daily cycle trend line to signal the daily cycle decline.

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