1:31 p.m., EST
If there’s going to be a big move, it’s the market’s job to make sure you’re not in it.
We’ve already had the push below, and reversal from, established support on inverse biotech LABD, May 28th.
At this point, we’re in a test that serves two purposes:
Frustrate the impatient and run the stops on anyone that’s incorrectly positioned.
The circled area on LABD, in the daily chart is shown on the hourly below:
Anyone that set their stop at the low of Wednesday, June 2nd (in what looked like a good location) has been stopped out.
On top of that, note how once that location was penetrated, price action ‘stopped dead’ (pun intended).
That’s the key.
Once the stops are cleared, there’s no more energy left to move lower.
As of this post, LABD’s already reversing from this area; supporting the hypothesis.
Short position in biotech SPBIO, via LABD, is being maintained; not advice, not a recommendation.
The more this market gyrates and attempts to throw off participants, the more it looks like something big is in the works.