… Or, Natural Market Behavior

The financial press will always come up with some kind of ‘reason’ why the markets went up or down.

However, getting to the truth of price action is sometimes boring and also requires a focused amount of thinking.

That thinking requirement, puts it ‘right out‘ (as the Brits would say) for any kind of media consideration. 🙂

Therein lies the opportunity; case in point, biotech, XBI.

The sector did not move higher today as a result of any type of ‘good news’ for potential rate cuts; cuts that so far have yet to materialize (waiting now, for over a year).

No, XBI went higher today to ‘test’ the underside of resistance after its own break through that resistance.

Biotech XBI, 3-Day

As stated in the prior update, it’s going to take some kind of extra demand to get the sector back to bullish.

For now, it’s right below resistance and testing.

Obviously, what happens tomorrow, is important.

If we’re in a test, and not a new leg higher, the expectation is for very limited upside price action … if any.

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.

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