The junior gold miners appear to be on the verge of breaking a three month downtrend. A break above the 50 day moving average at $31 would confirm the painful correction is over.

When this ratio is heading south, GDJX is weaker than GDX.

Our furry friends are going to need to make a decision soon.

Gold Miners ETF GDX broke below the lows of almost a year ago (Dec 2013) and promptly lost nearly 20% of its value in less than two weeks.

GDXJ has 68.54 million shares outstanding. During the last five days, it traded about 110 million shares.

Last week the gold market was ambushed twice in close succession – first by the Fed’s “everything is fine” statement (no-one can have been surprised by the well-telegraphed temporary end of “QE”) and then by the BoJ’s surprise assault on the yen.