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Revisiting the Gold Bugs Index

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From Slope of Hope......

Below is the broad view of index symbol $HUI, which shows how the analog has strengthened recently. The key, of course, is to break beneath that lower horizontal line. If we can do that, life gets interesting in a big hurry.

0307-hui1

 

Looking closer, you can see the important event that happened on Monday: we broke that ascending trendline. On Tuesday, we gapped down, creating a nice window at 508.92

0307-hui2
Looking closer still, you can see how much damage has been done since February 29th. We came dangerously close to crossing above 554.92, but mercifully we did not. The gold bugs index may seem odd and esoteric, but I am firmly confident that a failure of this index would be a crucial harbinger of a general plunge in equities.

0307-hui3

As a final thought, here is the price chart.........without the prices. This just shows a standard trio of simple moving averages and points out where I believe we are relative to the prior analogous timeframe.

0307-hui4


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