With the highest daily volume ever, 91-million shares last session, who’s taking the other side?  Of course, it’s a rhetorical question.

The professionals are likely the ones selling and selling-short.

Maybe there are a few amateurs as well who are just starting to figure out how the game is played.  That is, after they’ve blown out their account for the third, fourth, or fifth time.  Account blow-ups seem to be a requirement for every soon-to-be professional.

Even with that historic one-day volume, price action could not break through and close above previous resistance (see chart).

Today’s action continues below resistance.  Not a good sign.

We see that biotech fundamentals are out the window and herd (insanity) mentality is at the helm:  Video link here.

The risk of going long (IBB) at this juncture was displayed just a few days ago (Monday, the 13th) when downside action showed just how quickly the bottom can fall out.

What if there’s major rout?  Does anyone really expect their trading platforms to remain operational?

Lest anyone forgets, let’s review what a crash really looks like.

On this site, the impending reversal in biotech has been covered for some time and we’ve been looking to open a strategic, short-position.

With that said, it’s been a frustrating and somewhat expensive endeavor over the past two months to establish that short.

Biotech (IBB) action posted an all-time high yesterday with low thrust energy.  Today we have a new daily low.

It’s lower highs and lower lows.  That may be the signal:

Reversal underway.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.