No One Talks About It

It’s interesting, but then again not, how this sector (biotech, SPBIO) gets absolutely no mention in the mainstream or on YouTube.

It made all-time highs and reversed down long before the rest of the indices (except the miners); why is it not the focus of financial and technical discussions?

We’ll leave that as an open question for now and move on to the technical condition; that is, the downside pivot may be at hand.

The last update finished with this (emphasis added):

“Taking it all in aggregate, we’re obviously at an extreme and either going to reverse from here or launch into a sustained continuing directional move.“

Well, reversal it is.

This update will be brief, showing the current state of SPBIO (as of 11:57 a.m., EST) and the Fibonacci time correlation from the February 2nd top.

Biotech SPBIO, Daily

For the engineers out there, the ‘exactness’ (i.e., posting extremes to the day) is not important.

What is important is to recognize the structure.

That is at this point, price action’s adhering to a Fibonacci time sequence.

Good News, Bad News

The good news is, anyone short this sector (via LABD) is now green for the day (not advice, not a recommendation).

The bad news is, this market may once again be the downside leader. We’ve already done the work on projecting target areas.

If those projections come to pass, it’s going to be a very different world. At that point, this sector may actually be the topic of mainstream and YouTube discussions.

Stay Tuned

Charts by StockCharts

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