It’s just after the market open and there’s better than expected news on employment. That is, until you factor in temporary Census workers, skewing data to the upside.
The Money GPS has long been providing real data and analysis (for years) on the market’s end-game. Time stamp 7:24, at this link identifies the boost in employment numbers resulting from (Census worker’s) temporary hiring.
All this brings us back to price action. What is the market saying about itself?
For biotech, there’s a possibility for a rise into a Fibonacci retrace level during this session. The hourly chart below, captured just three minutes after the open, shows the action thus far.
From empirical observation, IBB exhibits behavior where stop running, equalization of forces are complete around 11:30 a.m. EST.
Depending on general market forces (S&P 500), if there’s going to be a reversal, it typically happens at (or before) that time.
If the down-trend is to continue, we’re looking for a test and reversal at either the 28.6%, or 38.2%, retrace level.
If or when that happens, it will be the trader’s discretion (not a recommendation) to either enter a short position or increase an existing position … or stand aside.