6:37 p.m., EST
Inverse biotech LABD, closes lower (again).
All is not what is seems.
Down-thrust energy diverging.
The daily close of LABD, shows price action has penetrated another (lower) support level.
Close below support on the weakest down-thrust energy (and lowest volume) since LABD, started its corrective move on May 14th.
Everyone has their own preferred time-frame. Ours is probably longer than most.
If there’s going to be a meltdown in biotech or some kind of serious correction lower, a likely bottom for a sustained move (as said before) will be where they usually are … the third week of October.
Price action is the final arbiter. However, it (SPBIO) has not (yet) indicated it’s on a new bull run to new highs.
At this point, the market’s frustrating both longs and shorts … and doing a good job of it as well.
Our short position via LABD, is being maintained … but the finger is edging closer to the sell button; not advice, not a recommendation.
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