The ‘Big’ One ?
Sometimes early in a reversal it looks like nothing’s happening.
Only after we’re underway, it’s clear where the pivot occurred.
In our case, biotech SPBIO, broke down out of its bear flag, came back to test and now, may be continuing on its downward track.
The reversal’s not obvious yet and can be easily negated by more upward pressure. We’re at The Danger Point®.
A quick review of the monthly chart shows a potential Head & Shoulders forming.
Biotech SPBIO, Monthly
If that’s what’s happening, the H&S pattern, it’s massive; spanning five-years and counting.
Of course, a massive reversal pattern would coincide with what’s happening overall at this juncture.
It seems that each day, we have more of this:
Twitter Files: Dr. Anthony Fauci “Lied Under Oath”
CDC Director Admits Vaccines Do Not Prevent COVID Transmission, Blames “Evolution Of Science”
Throw in a banking crisis or two, credit tightening, supply disruptions and this sector may collapse under the weight of that all by itself (not advice, not a recommendation).
Moving closer in, on a 3-Day chart we see the break and test more clearly.
Biotech SPBIO, 3-Day
We’ll zoom-in on the trend break.
Lastly, going to the 3X Leveraged Inverse Fund LABD, on the daily timeframe, it shows a repeating trendline that may be in confirmation during this session (currently, 11:15 a.m. EST).
Biotech Leveraged Inverse LABD, Daily
It’s still early in the session and anything can happen.
This is where the risk is least (not advice, not a recommendation).
Charts by StockCharts
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