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The GDX & GLD ETF’s are now sitting at a key technical area as they have both reached areas of strong prior technical support, and the classic pivot point of a 50% pullback of the prior move.

36.50 is a key pivot point for the GDX. And with this mornings negative open, that may be tested. I would not be surprised to see a strong intra-day reversal today, and if 36.50 holds, a break out above GDX 39 will trigger an new bullish uptrend leg for gold stocks.

I like this as an initial re-entry trade with tight stops.

Watch the large cap institutional fav’s like ABX, NEM and GG to lead the reversal.

I also like PUT “sales” at these levels and given the high volatility in the sector, there are some very rich premiums to be taken.

All eyes on the Dollar, and keep those stops tight.

Let’s see if we can generate a turn in the gold stocks today.

SliderOnTheBlack