Solstice Reversal

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.

Market Reversal

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.

LABD Hourly


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.

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.

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

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