HUI daily chart

Yey, we are still making higher lows and higher highs! Hurrah, in the big picture we (PM traders/investors) are still way up from the beginning of our bull market! Whee, the banks and general market look shaky here, proving us right! Booo, it feels like we are sinking in quicksand and the gold stocks feel like a heavy weight on our shoulders. One could argue that is the job of a hard correction; to drop a shroud of disappointment and fear over bullish proceedings.

But the daily chart shows a mixed bag. Worst case (for a continued bullish outcome) parameters are still intact but it has not been easy. On the plus side we certainly do have a series of higher lows and higher highs and the SMA 300 makes this look routine, but the daily trend by AROON (not shown) has now turned negative joining the weekly (monthly remains positive). There is a bearish cross of the MA's (which I do not usually give much weight to but it's there so why not toss it in?) and I have dredged up the old potential H&S top scenario that I conjured up over on the COW back in May. I do not think it is an H&S however as it would tell me my fundamentals are out the window and that thing is ill-formed to be a shoulder. Still, the would-be neck line shown on the chart - cutting through the low 390's area - had better not be taken out as it represents support.
The panel indicators also present a mixed bag. MACD is triggered down and breaking below zero and dat ain't good. Trixy is triggered down but still in healthy territory but that guy is a laggard remember. MACD needs to arrest itself right now and not drop lower than June's low. As for RSI & CCI, they sport fledgling upturns from what 'could' be bottoms but if Cramer is right instead of a contrary indicator, the ensuing washout will take out those levels down to the lowest readings around 30 on RSI and near -300 on CCI.

The chart shows the parameters we have been watching from a daily point of view. A review of the big picture monthly chart shows the drop to kiss the bull market backbone (EMA 18 @ 397) as a thing of beauty. Note however that before each new leg up the backbone was broken in a final washout before a quick reversal. The bullish sentiment so prevalent at the reverse symmetrical triangle top in March has been wrung out. The question remains, is the bottom in or not? Unfortunately, that is not yet conclusive. Bearing in mind that we cannot control emotional markets, the next few days should be interesting. Risk managers manage risk. Gamblers gamble. Investors and traders do whatever they do... it will be interesting.