3:29 p.m., EST
A close up look at 3X inverse, biotech LABD
Being inverse leveraged 3 to 1, this vehicle is amplified; sector changes in character can be picked up earlier.
What’s clear is the net distance traveled by downward thrusts is narrowing … down to nothing.
It could be a pause before heading lower or it could be that downward action is exhausted.
As we head into the close, price action can be seen slightly retracing upward.
We won’t know if that’s all for the downside until LABD posts another (new) daily high.
LABD made a new daily low during this session.
The interesting part; it had to post a new daily high (above yesterday’s high) to get to that low.
That’s the only way it could get enough fuel (i.e. create price instability) to push just 0.08-points lower … potentially signaling final exhaustion.