XBI, Two Days Later

The last post on biotech (LABD) was here, showing a potential trendline.

Next day, within minutes of the open, XBI began a collapse and inverse fund LABD launched higher, finishing up +9.93%, for the day.

From an analysis standpoint, the dramatic action suggests trendline(s) may need to be re-drawn.

We’re going to switch back to the XBI ETF, as it shows the situation more clearly.

Biotech XBI, Daily

There may be other channels in effect, yet to reveal themselves.

Expectation is for continued lower action, it’s up to the market.

The channel could easily be negated if tomorrow is decidedly higher as just happened with SNDK (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts, TC2000

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