The answer is fairly simple Joe.
Its about confirmation or non confirmation just like the Dow Jones industrial average and the transports.
In a rising market,one confirms the other but when there is a non confirmation, then more often than not a retrenchment will begin.
Same in a falling market.
So in this instance when gold drops precipitously breaking lows and the gold stocks refuse to follow then there is a non confirmation which will more often than not end up in a big reversal in the low breaker.
Its not written in stone and we may even have a sharp drop in the stocks to panic nervous holders in a trap before a reversal takes place.
But it looks to me that we are close to a reversal.
We shall see what the night holds in store for us.
