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 has opened lower (LABD higher).
Yesterday’s price action was entirely consistent with the ‘alternation’ discussed in that update.
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.
Charts by StockCharts