Biotech: The Thrust Is Gone

Before The Open

Biotech SPBIO And Inverse LABD:

Ready To Reverse.

We’re using the leveraged inverse fund LABD, for our analysis (SPBIO down, LABD up).

Yesterday, closed with the 4-Hour chart above.

Annotating with Force Index numbers; each early session 4-Hour bar for the past two days, has been posted on decreasing downward thrust (last two magenta down-arrows).

In addition, the first four hours of the last session penetrated support and then retraced in the next four hours (last bar).

That sets up a spring condition as shown:

Taking Forever?

If this really is the crest of a major (overall market) reversal, we need to remind ourselves, it’s a massive juggernaut.

Said many times, we (my firm) are looking and working on the big move (not advice, not a recommendation).

By definition, it’s not a popular method.

Nothing seems to be happening … until it does. Then, it’s too late to position.


With about 17-minutes to go before the open, LABD is trading unchanged.

Obviously, the first four hours of trade will be important.

The market (LABD) could continue to grind lower … or we may be at the end of the counter-trend move; ready to reverse upward for LABD and down for SPBIO.

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.

The Danger Point®, trade mark: No. 6,505,279

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