Another Reversal

One by one, each sector appears to be topping or reversing.

This time, it’s biotech.

Analysis (and action) over the past year has been on again, off again and now, appears to be back on again.

However, this time we have (as we’ll see below) a near perfect Fibonacci correlation.

Biotech Sector Index SPBIO, Daily

First, the big picture.

The corrective retrace that started way back in late October, of last year.

Next, we’ll get in closer to show the exactness of the Fibonacci levels.

It hardly ever works out this perfectly, but there it is.

Change Horses?

It’s no secret, the focus of trading action on this site since mid-October, has been to short semiconductors, potentially the largest bubble (A.I.) in world history (not advice, not a recommendation).

However, biotech may get its comeuppance as well with information like this, this and this hitting the mainstream.

The decision to take action or not, remains open (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