Mid Session

Putting It In Perspective

Biotech (SPBIO) is still well off the highs and in bear market (below 20%) territory.

We’re going to take the last section of the chart, highlighted below and expand it out to hourly.

Hourly detail is below:

There was a minor penetration of support yesterday, the 6th; that has resulted in a spring condition upward move.

Now, we’re at the Fibonacci 23.6%, retrace of the down-move that started on September 2nd.

Spring-To-Up-Thrust ?

Looking at the hourly, it’s clear just a little farther up and we’ll penetrate minor resistance (which is also the 23.6%, retrace). Doing so, would put price action in the all too familiar and well documented ‘spring to up-thrust’ condition.

At mid-session, with SPBIO retreating (slightly) from the highs, it may not make it to up-thrust, today.

However, one still needs to be aware of the possibility.

Positioning:

As my firm is positioned short this sector (not advice, not a recommendation), being in the red for the day is never fun.

However, at this juncture, the charts themselves say there’s nothing untoward about maintaining short.

Stay Tuned

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.