11:51 a.m., EST
The bulls upside attempt in biotech has failed
The last update said if biotech SPBIO, made a new daily high, the bulls would be gaining a foothold.
That new high and the foothold, have come and gone.
Admittedly, the retrace in SPBIO and inverse LABD went farther than anticipated.
However, as of this morning’s action, the attempt to move higher in biotech has either failed outright, or has been severely damaged.
If it’s failure, then we’re set up for a major downside move.
The daily chart of inverse LABD, has the now familiar trend-lines that are a repeating pattern.
The last two days may have formed yet another right side trend; rising at the same angle as the others on the chart.
There’s a remote chance, as price action nears SPBIO support (LABD near 30), the bulls could once again attempt to reverse course.
With the overall market oscillating to the downside (today’s counter move notwithstanding) and with biotech in the downside lead, an upside move seems unlikely.
The Project Stimulus position remains unchanged.