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Market Update: DUST, GDX, GLD

The market action in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) continues to inch lower.

Price action has not broken out to the down-side but it appears to be building a case for that direction.

In the GDX Daily chart below, we see that yesterday's session forcefully penetrated the trendline at the open and then came back to test at the close.

(click to enlarge)GDX DailyClick to enlarge

Chart by TeleChart

Looking at the SPDR Gold Trust ETF (NYSEARCA:GLD), it is still a long way before there is a breakout to new lows. What we do have for this week (with one trading day left) is a potential out-side-down week.

Last month (March) was a reversal in GLD and now this week, we have a weekly reversal along with establishing a potential trading channel.

(click to enlarge)GLD WeeklyClick to enlarge

Chart by TeleChart

At this point in time, the case continues to build for a continued down-trend.

The task now is to monitor price action for any problems in the gold-collapse scenario.

Disclosure: I am long DUST.

Stocks: DUST, GDX, GLD