This is one area of the market that is actually showing some weakness compared to the NDX and SPX, so it could be a warning for both those markets. The reversal from the last minor swing high at $93.87 could be favoring a peak in place, although I would still allow for a bit more upside to end wave [B] if needed.

As long as it fails to make a new high above $101.52, then it has a bearish setup for a move lower and tests $60.00 - 55.00 to end wave [C] to complete a large 3 wave decline from $101.52.

Bearish below $101.52, but tentatively looking lower below $93.87.

SP

 

SP

 

Chart

For those readers that have doubts about a decline below $60.00, I will leave you with a chart that I posted before the 2018 swoon. If you are bullish biotech stocks I would tread very carefully, a strong move below $85.00 on XBI could well be a strong sign of further weakness for biotech stocks.

SP

The content of this article is for educational purposes only, the information supplied shall not be construed as a recommendation to buy or sell any security or financial instrument. Wavepatterntraders will not be held responsible for any losses occurring from the information provided within the article. The information expressed within the article is solely the opinion of the author/owner. Wavepatterntraders are not registered investment advisers. Readers are strongly urged to consult an investment consultant before making any financial decisions or investments.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: Snaps four-day winning run, but bull breakout still valid

EUR/USD fell 0.28 percent on Tuesday, engulfing Monday's high and low and ending the four-day winning streak. The currency pair however, defended the former resistance-turned-support of the 200-day MA.

EUR/USD News

GBP/USD offers fewer moves ahead of Carney’s speech

Having reversed from the 50-day SMA, mainly because of renewed Brexit fears and sluggish data from the UK’s CB retail sales survey, the GBP/USD pair trades modestly flat near 1.2685 ahead of the London open.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Gold bulls target $1485/oz

Gold prices rallied in Asia but stalled and started to deteriorate in European markets into consolidation before a sell-off emerged on the back of less dovish than expected rhetoric from Fed speakers on New York.

Gold News

Majors

Cryptocurrencies

Signatures