The above chart compares the New York Stock Exchange Index (NYSE) to the Market Vectors Junior Gold Miners (ARCA:GDXJ) ETF. The ratio has created a strong move up over the past few years as the stock market has performed tons better than the miners ETF.
The ratio may have created a head-and-shoulders topping pattern. Even if the pattern-read is incorrect, the ratio does find itself at the bottom of a rising channel, as it tests support.
What takes place at this support line could be very important for miners as far as where they find themselves at year's end.