Replies to post #21991 on Market Direction and Stock Trends

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>>> Is XBI Taking a Breather or Establishing a Top?
By MPTrader | July 28, 2017

The SPDR S&P Biotech ETF (XBI) spiked to a new post-Nov high at 82.38 on Tuesday (7/25), which neared my optimal, upside target zone of 83.00/50 projected from the June 26-July 10 bull-flag formation.

Since then, however, it has reversed sharply, and has sliced beneath its June-July up trendline at 80.00, and briefly pressed beneath its flattening 20-DMA (79.01).

Yesterday's weakness inflicted some damage to the near-term uptrend, which is undergoing a, so far, minor correction that must be contained above 77.00-76.80 to avert XBI becoming vulnerable to a more serious, deeper correction.

The juxtaposition of my daily momentum gauges suggests strongly that unless XBI closes above 80.00, which will neutralize Thursday's negativity, we should expect another roll over into a retest of 78.15 - 77.00 near-term support.



https://www.mptrader.com/middayminute/

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