GDXJ Update : Picture Perfect Chartology

Just a quick update on the GDXJ chart that I showed you a couple of days ago. I showed you how perfect this junior index has been performing. The yellow shaded area shows you how each breakout was followed by a backtest. Yesterday we got the backtest to the the top rail of the downtend channel. This was a big deal IMHO. It told us that top rail is still very hot and to be respected. The yellow shaded area should be in a textbook somewhere that shows how charting works and that it isn’t some kind of voodoo magic or something. Its all based on investor psychology. Read my post on September 24th.

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