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.
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.
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.
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