DJIA UP IN SHARP RALLY, GOLD STOCKS SLIP

After a correction, any big up day in higher volume, on Day 4 or later of a rally try, signals a follow-through. Today's Dow's 2.2% surge on Day 4 of its rally try fits the bill.

On Friday, the market saw big price declines in heavy volume. That kind of distribution can negatively affect a rally try.

But unlike the other major indexes, the Dow never undercut its near-term lows. Monday's recovery thus signaled a follow-through for the Dow. The market only needs one of the broad indexes to follow through to confirm a rally.





Gold/XAU Ratio 4.74
I think I will find an another entry soon for another Gold Stock Trade. See chart of $HUI.