The Set-Up Before Reversal?

Is this what it looks like before a complete meltdown?

Do we have to launch higher, squeeze out the shorts and suck in the retail (longs) before the big reversal?

We won’t know for sure until (or if) the market turns lower.

As a point of housekeeping, the LABD-23-11, trade was closed out near the stop @ 25.47 for a gain just over 17% (not advice, not a recommendation).

Now, we could be setting up for the big move lower.

Biotech (SPBIO), $SPSIBI Daily

The chart is straightforward.

If I am going to consider another short position (via LABD), price action needs to get to the target area shown (not advice, not a recommendation).

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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