Less Time Pushing Higher

The danger of this situation can’t be over emphasized.

Not only do market levels and depth of penetration need to be watched but also the time; time spent pushing higher or lower.

Biotech SPBIO, indeed moved higher and penetrated our previously stated 6,384.50 level; here’s the important part: As of now (11:34 a.m., EST), it’s struggling to hold that level.

Looking at leveraged inverse fund LABD, on a 30-minute basis, the market itself is showing, each successive thrust lower (higher for SPBIO), spends less and less time at the new level.

Like a drowning swimmer coming up for less air each time.

The market (SPBIO) may get itself together and somehow continue higher.

However, at this point, we’ve got a hard stop; this morning’s LABD low, of 20.90 (not advice, not a recommendation).

SPBIO, Leveraged Inverse Fund LABD: 30-minutes

Today’s close is likely to be important.

A failure to push lower for LABD, may indicate “we’re done” and now ready for a decisive reversal.

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