When One Is Found …

… It must be used to it’s maximum extent’.

A paraphrased quote from late Gerald M. Loeb, Vice Chairman of E.F. Hutton, Author of: The Battle for Investment Survival.

Here … Now?

Is that where we are with biotech, XBI?

Obviously, the answer won’t be known until it’s all over.

What we do have, is a potential reversal in the making that could be of significance.

No New Highs

At the open today, XBI immediately began to post lower.

It did so without exceeding the prior recovery high set three trading days earlier on February 28th.

Biotech XBI, Daily

The daily chart shows just how close XBI is to a 38.2% retrace. A bigger picture view of that retrace is in the prior update, link here.

It’s obvious we’re still at The Danger Point® where anything can happen.

However, price action tells us, it’s struggling at this area.

A decisive break lower would likely signal a top and significant reversal (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