Amidst The Confusion, The Biotech Set-Up

Let’s remind ourselves with a paraphrased quote, long ago:
‘Until you can completely ignore the financial press and focus strictly on price action, you will never be successful in the markets.’
Richard D. Wyckoff, circa 1934
New Highs … Except
It’s new highs for the AI insanity; all the while, CEOs and other insiders are cashing out, as reported by The Maverick, and J. Bravo.
Notably absent from this drunken cyber-bash are biotech IBB, and XBI.
Fibonacci Retrace Compete?
Both indexes (ETFs) posted a Fibonacci retrace (from 2021 highs), doing it simultaneously; IBB at 50% and XBI at 38%.
Potential reversal of XBI, link here.
We have below, even more (technical) weight for XBI pivot from up-to-down (not advice, not a recommendation).
Biotech XBI, 3-Day
Attempted breakout above resistance (magenta line) puts XBI, at The Danger Point®
Price action’s hovering above resistance while at the same time posting climactic volume.
Note that it’s just touching the underside of the 38.2% retrace level (blue line).

The last time we had a similar volume climax was the pivot point from down-to-up, in early May of 2022.
Does that mean the current volume spike signals a (potential) reversal from up-to-down?
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
















