GDX direction depends on price action: breakout above 101.83 signals start of wave three; failure and drop below recent lows signals continued wave two correction.

There is potential that yes, we have struck the bottom of a wave two in in GDX. And that means we have a one two one two being presented for wave one of three.

That means we have to take out yesterday's high. If we are unable to take yesterday's high and take out yesterday's low instead, that puts us on a path for at least this in a more expanded ABC of wave two.

If we get a five wave structure into this, that's going to be another buying opportunity. And you put your stops just below here. Why do I say that? A five wave structure it would be a C wave that is likely going to hold for this wave two.

If we get something that is more extended into this like a heart of a third wave into this, it's going to likely mean we're probably in the yellow count. What does it take to completely invalidate the yellow count?

To completely invalidate the yellow count, you have to take out this wave two high. That is 101.82, which is what I outlined or 83, which is what I outlined yesterday.

But you got to take out this high to invalidate this one two one two downside structure. So, right now we're at a very important juncture. Below here likely means this is not happening.

Below here points us at least to here. So, you break this low and it points us at least to here. It could see a bigger downside extension in the heart of the third wave.

We won't know until what actually develops. So, that's what we're looking for over the coming days. Either a take out of this through 101.83, and that likely means we're in wave one of wave three.

I expect a wave two of wave three pullback probably to test this breakout again back to the 101.80 region. That's going to be your next buy after that, and then we probably take off from there.

I would say silver and GDX are giving us the best signals right now.