Is The ‘Bounce’, Over?

Early Session

S&P Bullish … Or Bearish?

This is how the S&P (SPY) looked before the open.

The blue lines show a small wedge pattern. Under bullish conditions, price action continues higher into a measured move; somewhere around SPY 449 – 450.

What we got at the open, is below:

The SPY opened lower and so far, has not continued its upward momentum.

It may be nothing; or it may signal the Right Shoulder of the Head & Shoulders, is complete.

As always, anything can happen. SPY may be just gathering steam for an attempt at new daily highs.

However, the action in biotech indicates the bears are moving into the markets; behind the scenes and slowly at first.

Biotech, SPBIO:

Biotech has opened lower (LABD higher).

Yesterday’s price action was entirely consistent with the ‘alternation’ discussed in that update.

For Example:

There was no (immediate) downward test from the September 17th low … and this time, the September 23rd low, there was:

We can see, after the open, price action for LABD is pushing higher (lower for SPBIO):

If we get a new daily high for LABD (above yesterday’s 19.62), it signifies the lower testing action is likely complete; the bears are taking control of biotech.

Stay Tuned

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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