Gold stocks had suffered big losses six out of seven sessions heading into Wednesday. Such behavior has suggested “puke” phase of prior declines, leading to at least shorter-term gains every time (There is a chart in this piece that gives a powerful illustration).
On Monday we noted that every member of the Gold Bugs Index (HUI) was trading below their 10-, 50- and 200-day averages.
That kind of depressed activity has only occurred in the midst of extremely heavy selling pressure, usually enough to precede at least a counter-trend rebound.
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