From the Short Side of Long website, their August market breadth presented one interesting fact about gold mining stocks. As seen in the chart below 78% of the Gold Mining Index components are trading above their 200 day moving average.

The question this brings up is… What does this mean for this market?

Here is their answer… “Bears would claim that miners are most overbought since late 2011 peak and therefore should be primed for another correction. On the other hand, bulls would claim that miners participation is the strongest in thee years, just as the index attempts to breakout from its basing pattern. In my opinion, the wisest thing to do is to sit still and wait for the market to reveal its hand. Also be very well aware that a false breakout could occur in either direction as well.”

Click here to read the rest of the August Market Breadth post.