Market commentary & new trade ideas continue to be on the light side as the risk/reward on both the long & short side for just about all sectors remains unfavorable at this time. Regarding the US broad markets, both the SPY & QQQ continue to grind higher while the divergences that I’ve been pointing out for weeks now only continue to build, thereby increasing the chances of a correction and long-side breakouts failing. The live charts for most of the US broad indices (SPX, NDX, COMP & RUT) have all been updated although little has changed recently other than the possibility of a double-top pattern formation developing on the $RUT (Russell 2000 Small Cap Index).

The divergences & near-term overbought conditions in the gold & silver mining stocks has begun to play out with GDX & SIL already down nearly 7% since the peak on Thursday morning & GDXJ (junior gold miners ETF) down over 9% since then. Based on my interpretation of the charts, I still favor additional downside in mining sector in the coming days, possibly weeks and have listed an updated pullback target range on the 60 minute GDX chart above.