‘Inside Days’ For Biotech
The market will attempt to hypnotize all participants.
That’s what’s happening now.
This, just out from ZeroHedge; buying ‘puts’ at the bottom and selling out or timing-out at the highs.
Typical bear market behavior
Our chosen sector for going short, biotech (SPBIO), is not immune to hypnotic action (not advice, not a recommendation).
Yesterday was an ‘inside day’, staying within the confines of the prior day’s action.
We’re still at The Danger Point®; it can go either way.
In the pre-market (8:55 a.m., EST), biotech along with the overall market is set to open higher.
How much higher, is the key as we’ll see below.
Biotech SPBIO ($SPSIBI), Daily
The daily chart includes our ‘trick’ previously discussed of using LABD volume to show supply/demand forces.
As price action rose to test the top of the range, volume decreased significantly.
Commitment to the upside is weak (at this point).
The zoom version below shows more detail.
From the LABD pre-market action, the best that can be determined, we’re still within the range of Friday’s (9/30/22), bar.
As shown, the level to watch is the SPBIO high of 6,384.50.
A decisive penetration of this high indicates potential retrace to 50%, at least.
In that case, the short in LABD (LABD-22-06), will be exited (not advice, not a recommendation).
Charts by StockCharts
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The Danger Point®, trade mark: No. 6,505,279