Culmination of probabilities; That’s what appears in Biotech, IBB

First: The 150 target identified in this post has subsequent price action reaching a 149.31, high … could be close enough

Second:  The daily chart has a small terminating wedge pattern created over the last five sessions.  A wedge is usually the last stop before reversal.

Third:  The amount of upward energy (Force Index) available to push prices higher has evaporated.  Today’s session, while closing marginally higher, had near zero energy.

Fourth:  Today’s price bar was a reversal; A higher open, higher high, followed by lower low and lower close.

Fifth:  The last reversal bar was five trading sessions ago.  That bar was negated by subsequent price action; leading up to today.

Markets alternate.  What happened the last time (negation of reversal) is not likely to happen this time.

Sixth … sort of.  The gold market and the miners (GDX) could have received a ‘safe-haven’ bid in advance of an overall market decline.  Did today’s rally in gold just signal the market top?

As of this post (8:02 p.m. EST) the overnight session (S&P) is trading lower -8.50-pts or -0.23%.  So, we’ll see.

With the above five items listed and the probable sixth, expectations are for a lower open on tomorrow’s IBB session, then adding weight to the reversal. 

Charts by StockCharts

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