Gold Just Called the Fed’s Bluff

Editor's Note: Click here to learn more about how Jeff is crushing the market this year..

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The miners started down initially on the Fed yesterday but did an abrupt about face calling the Fed's bluff on a weak statement.

The miners knifed down and then shot up to gap fill.

As offered yesterday, GDXJ was at an inflection point with 2 rebounds to its 20 day line.

Will the second mouse get the cheese for the bulls or bears in the miners?

Was the gap below the 20 dma right on the perceived July 20 turning point just a short term shakeout?

Above 49/50 suggests the break was just a shakeout with higher prices on the table

Gold shows similar backtests of its overhead 20 day as it rebounds off a rising trendline.

July 23 vibrates off the 1377 high on the Square of 9 Chart which ties to the test of this 2-month trendline

See GDXJ from the morning report here:

See daily gold here: