On Wednesday the Miners broke bullishly from being squeezed by the 50 DMA & the 10 DMA. The Miners broke above the 10 DMA, 50 DMA & the 200 DMA. They also closed above the upper daily cycle band to signal an end to the daily downtrend.
This breakout reminds me of the June breakout.
June 6th the Miners broke above the 10 DMA, 50 DMA & the 200 DMA. They also closed convincingly above the upper daily cycle band to signal an end to the daily downtrend. But the Miners delivered a bearish signal on June 6th by printing 356 million in SOS. That eventually lead to the Miners dropping over 9% and printing an extended 45 day DCL on 7/10/17.
This makes me suspicious of the current breakout.
Prior to Wednesday there had been 897 million in SOS. Wednesday the Miners printed another 289 million in SOS. This has me suspicious of a repeat performance.
While the Miners did print a higher low on July 10th, I will need to see a clear and convincing break above the declining trend line to be persuaded that the Miners are in a new daily uptrend.
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