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Remember the maps at the mall … that showed the layout and where you were?

Well, here we are:

In candlestick lingo, Thursday was a ‘hanging man‘ set-up.

Friday was confirmation with a lower open, lower close, and penetration of the prior day’s low.

Error Correction:

A prior update made somewhat of an error when it said ‘Of all the major indices, biotech on a percentage basis, is the downside leader.’

Sort of.

The Index Table below is updated to include gold (GLD) and the senior miners, GDX.

In fact, GDX is leading the downside.

From a trading standpoint, GDX has been ignored because it’s such a crowded market. Nonetheless, for different reasons than biotech (i.e. deflation), strictly speaking, it’s the downside leader.

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.

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