Gold Miner ETF Holds Key Zone

AMEX:GDX   VanEck Gold Miners ETF
Gold miners have been consolidating for the last six months and now the Market Vectors Gold Miner ETF is bouncing at a potentially key level.

GDX peaked around $28 between late October and mid-December. It then broke out and has now pulled back to find support at the old resistance. There's also some confluence with the 50- and 100-day simple moving averages at the same area.

Meanwhile, the U.S. dollar index just made another lower high below its 50-day SMA . This isn't a huge surprise given the Fed's strongly dovish stance -- especially after last week's poor non-farm payrolls report AND this week's tepid inflation numbers.

GDX could also serve as something of a hedge against downside in the broader market. While the S&P 500 isn't showing many clearly bearish signs yet, a lot of good news is potentially priced in.