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Market Summary: DUST, GDP

Goodrich Petroleum (GDP) continues to hold an aggressive trend-line and is approaching the next resistance area:

(click to enlarge)GDP DailyClick to enlarge

Chart by TeleChart

This price action is what would be expected with a short-covering rally.

How GDP behaves at the next resistance level may indicate if higher prices are going to be available.

Looking at the Direxion Daily Gold Miners Bear 3X ETF (NYSEARCA:DUST), it continues to validate the premise that there is going to be another down-leg in the gold miners.

The weekly chart is shown below. If the premise of another move lower in the miners (higher in DUST) is correct, then price action had to do exactly what it did today.

(click to enlarge)DUST WeeklyClick to enlarge

Chart by TeleChart

DUST price action penetrated downward early in the session, stalled and then dynamically reversed back into the trading range by the close.

(click to enlarge)DUST DailyClick to enlarge

Chart by TeleChart

This is a classic false breakout and one of, if not the most reliable indications of future price movement.

So, the down-side continues to be validated by empirical data (newsletters calling for "the bottom") and then a contrary viewpoint that makes more sense than the "bottom" call.

In addition to the above data, price action is indicating that the additional down-leg is more probable than a new bull market.

There may be too many that are still long the miners to have a sustained bull move.

Disclosure: I am long DUST, GDP.

Stocks: DUST, GDPM