Today’s action may be in a trading channel.
It’s a Fibonacci eight days from the low of September 4th, to the top on the 16th.
That time correlation, along with the channel hits, help to provide validity to the set-up.
Our short position in the sector has not changed appreciably. There was a slight backing off yesterday, by reducing the size about one-percent.
However, during today’s action as IBB was making intraday highs (BIS making lows), the short position was increased, via BIS.
In any event, we have a hard stop at the day’s high, IBB 134.85, which is approximately 31.46, on BIS: Not financial advice, not a recommendation.
As of this post, 7:00 p.m., EST, the S&P 500 futures are trading down about -0.50%, giving the inference that downside action will continue at the next session.
Silver futures have dropped another 4.5% – 5%. Price action’s heading straight down. Nearest chart support for the SIZ20 (December) contract is around 20.00.
Charts by StockCharts