HUI is due for at least a major bounce soon….
The HUI tagged the 400 day MA last week. While it is possible that we break a bit below that MA for week or two or perhaps stay stuck just above it for a few weeks, the risk reward favors at least a major bounce here. A retest of the 200 day MA, which admittedly could start arcing downwards any day now, is highly probable. Risk-reward certainly favors being long here, IMO, even if you have to suffer a minor drawdown before you are in the money.
Also, we have weekly cloud support around 260. Coupled with the above facts, the odds of a further breakdown from here are very very slim IMO. If it does roll over, as some here have predicted, it won’t be before at least a significant bounce.
Basically, bull or bear, the 400 day MA is major support (or resistance).
Notice that back in 2016 that after hitting the 400 day MA, price found a low about 1 month later and then rallied back to the 200 day MA. It’s possible we get something similar this time since we are only on week 12 of this intermediate cycle, which is still very short. A 16 week cycle would be more normal (and would still be considered very short historically).