Let’s Not Forget, S&P Bottom @ 666.67
The S&P bottomed out at 666.67, on March 9th of 2009.
Putting it differently; that’s 3/9/09.
When that ’09, bottom is discussed in the financial press, they quickly round it up “667”; nothing to see here.
The S&P needs to print a new daily low to make it official but our chief cook and bottle washer, biotech, looks like it’s not waiting around.
Pre-market action in (inverse) LABD is already at a new daily high, corresponding to a new daily SPBIO, low.
Once again, the short position was exited during the last session and then re-entered (discussed below) towards the end of the day (not advice, not a recommendation).
Trade LABD-22-03 is closed out; LABD-22-04, now open.
Biotech SPBIO Inverse Fund LABD
The chart shows pre-market action is at this juncture; Fifteen minutes before the open.
The hourly chart below has entry detail along with the current stop.
With the market to open gap-higher (SPBIO, gap-lower), the first order of business is likely to be an attempt to close that gap.
If there’s going to be an attempt, look for it within the first 90-minutes of trade.
From my firm’s standpoint, the actions are obvious: We’ll be looking to increase the LABD-22-04, position and continue to have a tight stop (not advice, not a recommendation).
Anyone accessing this site for any length of time is most likely, fully awake.
Go ahead and look up “June 21st” on this calendar; it all makes sense.
If this reversal ‘sticks’ and is the pre-cursor to much lower levels, we know ‘the enemy’ has not changed.
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.
The Danger Point®, trade mark: No. 6,505,279