The daily chart of HUI shows a bullish Huey heading toward some short term over bought readings. For the record the AROON indicator, which I neglected to include in the daily still shows a down trend. Fibonacci retrace levels are shown to illustrate that in the short term at least, HUI remains in a corrective mode to the DOWN trend.

Why have I remained positive on the gold miners technically and held the core throughout the correction? Because the weekly chart remains more than fine. Until such time as weekly RSI & MACD fall below the green dotted lines shown, any pullbacks are to be looked at as opportunity. I don't expect such a failure any time soon. A short term pullback to support is unlikely to bust the MACD & RSI.

With the broad market's risk/reward starting to stink from a technical perspective and with the gold stocks having assumed a more traditional counter-cyclical stance, the setup appears to be in place. While traders may want to look for a place to take short term profits, getting too cute trading in and out will likely prove costly at some point soon.