Most gold related stocks have hit a low about a week ago as this GDXJ chart shows. Once the downside breakout faked everybody gold stocks proceeded to turn and roar. One thing that's nice is that it is a clean bottom with no secondary bottoms to contend with at this time.
To give us more confidence that a bigger turning is in progress It would be important for gold stocks to clear my top trend line, and clear it by a wide margin as well. Gold stocks look nothing like gold itself and this is important to remember when we get to another major top. It would also be nice to see if the low of $16.87 will be
the low for 2016. If this is true, then all declines for gold stocks will be corrections.
There were no large gaps that formed on the way up which is another good sign there may be more upside to come.
The HUI also crashed to the same type of low, but it has several gaps on the way up. Any decline has to look like a correction otherwise gold stocks will just plunge and hit another record low.
Once the correction seems a bit more certain then I will turn bullish once again.