With the metals beginning a rally this week as I had wanted to see, we are still not yet quite there. You see, I said I need to see a CLEAR 5 wave rally off a low, and, thus far, we only have 3 waves.
So, as I am a bit short on time, I can make this update really simple. I have added an 8 minute GDX chart for illustrative purposes on the micro count. As you can see, I still need another push higher to complete an initial 5 waves up off the low. But, the one thing that does concern me a little is that the 3rd wave did not even strike the 1.618 extension of waves 1-2, which is unusual in the metals complex, as extensions usually exceed the standards, and rarely come up short.
Therefore, please do not take anything for granted, as we really need to see that initial 5 waves up to begin to turn the tide for the bulls and begin to have me looking higher in the coming months in an aggressive fashion. Until then, I am still a bit cautious until we at least get this first 5 waves up off a low.