GDX, the gold miner ETF, broke down to its lowest level since September 2009, according to Investors Intelligence analyst Tarquin Coe.
“In doing so a mammoth top is activated but the success of that pattern unleashing its dark side is diminished by the oversold chart condition. The 14 period RSI [relative strength index]on the weekly chart is at its lowest level for three years,” he said in a note Wednesday.
GDX is down about 16% the past month.
Market Vectors Gold Miners
Full disclosure: Tom Lydon’s clients own GLD and SLV.