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I have profiled the divergence between the senior and junior gold miners several times in recent posts, and it continues to intrigue me. The GDX, ETF for the larger miners, is consolidating in a rather orderly manner above all of its daily moving averages. This looks to be a fairly textbook bull flag. On the other hand, the GDXJ, ETF for the junior miners, is below all of its declining daily moving averages and could easily be on the verge of breaking lower from a bearish rising wedge.
This divergence could be a function less risk appetite on the part of gold mining investors. Either way, I am curious to see in which direction the divergence is ultimately resolved. Of course, there is the possibility that the seniors and junior simply detach from each other for an extended period of time. For now, though, the action is in the larger cap gold miners until further notice.
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