Biotech Tags The 200-Day

Now Comes The Dangerous Part

In what seemed to be never ending thrusts to the upside, biotech SPBIO, appears to have tagged the 200 Day, Moving Average, ready to pivot.

We’ll start first with the daily chart of tracking ticker $SPSIBI (SPBIO) to show the near contact with the 200 Day.

SPBIO, Daily

Next up is the 3X Inverse Leveraged fund, LABD.

It has printed record volumes (changing of hands), on weekly, daily, hourly, half-hourly and even a 15-minute basis.

Now, with today’s extreme move, we may be done.

SPBIO Leveraged Inverse LABD, Hourly

The chart is compressed to show the entire retrace move so, it’s a bit hard to see.

A zoom version is provided on the second chart

Zoom version

The markets in general and biotech specifically are in a precarious position.

The weekly chart of SPBIO ($SPSIBI) below shows the cross of the 50-Wk and 200-Wk MAs.

SPBIO Weekly

This is the only major index to be posting this characteristic (with GDXJ, very near).

It’s a short squeeze in a major downtrend.

Price action itself, says so.

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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