Quick Reminder - Market Analysis

I want to send out a quick reminder to everyone not to get overly bullish just yet.  WE still need 5 waves up in this set up, or it would suggest this is simply part of a corrective rally, setting up another drop towards 19.90 GDX.  The main level you want to hold is 22.40.  As long as that holds, then this can still be viewed as a 4th wave pullback.  But, we still need a 5th wave higher to complete the more immediate bullish pattern.

A break of 22.40 would be a strong indication that we will be mired in a corrective pattern for longer.  Ideally, even in the corrective pattern, a drop below 22.40 would be a b-wave pullback in a bigger b-wave rally.  We "should" hold the 21.90 region for that to be the case.

So, I am sending this out this morning so that people do not get overly excited YET, and so that people do not begin to leverage up.  I want you to understand the potential in this region right now and know what to look for.

Avi Gilburt is founder of ElliottWaveTrader.net.