Gold And Gold Stocks

 

In the above daily chart we have gold stocks (GDX) with its relative strength line in green. The bottom chart is of the S&P500 (SPY). With the market pushing lower we are seeing gold stocks diverge by putting in a higher low. The relative strength line which is the gold stocks divided by the SPY is now breaking out to a new high highlighting the current strength.

Watch for a bullish move in the gold stocks in the coming days.

AAPL's Relative Strength

Above is a daily chart of AAPL along with its relative strength line. The S&P500 has pushed down to a new swing low while AAPL is making a higher low. The RS line is also holding at new multi month highs. If the overall market can find its footing AAPL is worth looking at to the long side.

Financials Take The Market Lower

Below is a 60 minute chart of the financial etf symbol XLF and in the panel below that is a relative strength line which is simply the stock price divided by the S&P500 (SPY). As you can seen  the RS line was already beginning to weaken  just prior to the large down move. The RS line broke low before price did which was a sign of weakness.  Wait for a rally and look for signs of relative weakness to get involved on the short side.