What with the belatedly discovered sell signal on the XAU/Gold ratio last night and today's breach, albeit a very small breach, of the 50 dma for the HUI - the need for caution goes up in my opinion.

The chart pattern is starting to look like a bear channel breaking down.

In EWA terms if this does turn out to be the C wave of an A-B-C correction...and for rough planning purposes C=A then we are looking at another 50 point drop potentially.

I would suggest that it would take a move above the 325 resistance level to show that this is a down side fake out.