Looking at the chart, you can see that the Market Vectors Junior Gold Miners ETF (GDXJ consolidated since last month. Now, it has popped above that short-term downtrend. I’ve put a momentum indicator on the bottom of the chart called “MACD” – it shows that the short-term trend remains bearish.
The GDXJ could continue to break out. On the other hand, it could also head down to test support. There are a number of support levels, but the one just above $38 is most obvious.
While GDXJ has lagged gold, I don't think it would move independently of gold. Therefore, higher gold prices will likely push the GDXJ higher. If gold goes lower, then maybe we'll see the GDXJ test that support.
A deeper pullback wouldn't be a bad development – it just means we'd get better prices on potential picks.
And while the broad index is underperforming, there are individual stocks that are performing quite well. I recommended one of them this morning in Gold & Resource Trader.
Good luck and good trades, whatever you buy.