Metals And Mining Sector Ready To Fall...Hard

Metals And Mining Sector Ready To Fall...Hard


Here is the SPDR® S&P Metals and Mining ETF (NYSE:), which has demonstrated its overhead supply by way of that upper horizontal line:

XME Daily Chart

XME Daily Chart

As you can see from many years of data, this instrument definitely has the ability to top and fall.

XME Monthly 2002-2021

XME Monthly 2002-2021

As the ratio chart below suggests, XME’s explosive rally versus the VanEck Gold Miners ETF (NYSE:) is very long in the tooth, which I believe improves the likelihood that XME is in for some weakness.

XME/GDX Ratio Chart

XME/GDX Ratio Chart

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