The Gold Bugs Index could be sending some good news to this out of favor sector of late!
The Gold bugs index has struggled for the past 7 years compared to the S&P 500 as it has created a series of lower highs. This decline shows that gold miners have been much weaker than the S&P 500. The weakness in the ratio has been suggesting to be long the S&P and short the gold bugs index.
Of late, the ratio might have created a double bottom, bouncing off the 2016 lows. The strength in the ratio has it breaking above falling resistance at (1).
This breakout is good news for this hard-hit, out-of-favor ratio.