Volatility Explosion in the Gold Miners

After today’s 6.41% drubbing the gold miners have essentially gone nowhere in the last three weeks despite traversing a nearly 20% range and making a 21-month high last week. Even as price has remained range-bound, volatility is breaking out to the upside:

 

GDX (Daily)

GDX_Daily_5.9.2016_Vol

Daily rolling 7-day average true range has broken out to the highest level since November 2014 while GDX is on a streak of 8 consecutive trading sessions with at least a 4% change from the previous day’s high/low to the current day’s high/low (previous day’s high to following day’s low >4% OR previous day’s low to following day’s high >4%).

Market tops/bottoms are generally characterized by volume/volatility expansion as price stops making new highs/lows. You tell me what’s going on here in the goldies?…

 

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