Some people use XBI (weekly, daily) to indicate risk-on/off since biotech stocks are generally riskier investments. Going back to the pandemic drop in 2020 (and before), you will see 87 as a resistance area. The market gapped over this when the recovery (market rally) picked up steam. Now here 86-87 is again at the top of a supply zone.
Based on other indicators as well, a pullback may occur here before further upside. Selling and/or put buying may occur before FOMC next week.
Based on other indicators as well, a pullback may occur here before further upside. Selling and/or put buying may occur before FOMC next week.
Comment:
Yesterday XBI retested daily range lows and closed over 10ema. Today price is moving up again. Price should get back to 84 and move higher to 87, 90, 92. This may be leading a rise in markets.
Interestingly, when you look at a weekly chart, note price has already gone down to 2020 lows and for the past two weeks is holding above the 20sma while RSI is near 50. I am watching to see if price heads towards 70 one more time before a real move up, or if it holds over 79-80 and continues rising.