My GLD/GDX Ratio Work Favors Relative Strength in the GDX

The SPDR Gold Shares (GLD) vs Market Vectors Gold Miners ETF (GDX) ratio charts certainly look like it has developed a one year top formation, which means that the relative strength in Gold (the metal) has peaked versus the Gold Miners.

Put another way, we can say that money increasingly is finding its way into The Gold Miners and out of Gold (within the gold sectors).

My sense from the chart is that the ratio line will head due South, suggesting strongly that the Gold Miners will continue to be the newly preferred vehicle to participate in Gold in the weeks ahead-- after years of under performance.