Update to earlier ideas. GDX hit the 161.8% extension in the presumed wave iii of ( iii ) of 3. This morning's weakness looks like a wave iv of ( iii ) pullback - and may not be complete quite yet. Below the red line and "Support" region I'm clearly wrong on the wave degree and will update the bigger picture. I expect pullbacks will continue to be brief and shallow throughout the 3rd wave.
Possible wave iv goes down again into the support region in an a-b-c corrective formation with the current bounce as wave-b. Clearly over yesterday's high that's not likely. Even then, an expanded or running flat is possible to extend wave iv of (iii) further in time. Trying to catch the elusive one-more-low in the middle of a 3rd wave is quite difficult. Short covering and chasing are characteristic of the larger market, and retraces can be short-lived.
Indicates a break of support. I suspect we're in a 4th wave consolidation of some degree. Looks like a correction in TIME versus a correction in PRICE. I'll update again when resistance gets taken out in an impulsive fashion, or if support breaks. I'm holding positions firm...for now.
30.43 is the pre-market high this morning. Taking out 20.43/.45 with gusto suggests wave iv is done and (iii) of 3 is underway. I've lowered my red line a bit, allowing for a deeper correction in price. Below the 61.8% extension I'll elaborate on alternatives. On larger timeframes this correction is still quite shallow in the big picture. Just eating up option premium. Sorry my annotations are a bit cluttered, but this is what I'm watching for those interested.