Gold miners’ stocks blasted higher this past week, breaking out of their correction downtrend. Rapidly-improving psychology fueled such strong upside momentum that sector benchmarks are challenging months-old upleg highs. Most traders assume this is righteous, that gold stocks’ next upleg is starting to accelerate. But key indicators argue the contrarian side, that this breakout surge is a head fake within a correction.
In early September, a major gold-stock upleg peaked after soaring higher on gold’s decisive bull-market breakout in late June. The GDX VanEck Vectors Gold Miners ETF (GDX), this sector’s leading benchmark