Psychology of a Market Cycle Cheat Sheet: goo.gl
IBB's chart is identical to the chart on the market psychology cheat sheet linked above.
IBB 5-wave cycle is over + Truncated 5th
Algorithms exit the market after extended 3rd waves, leaving the 5th with no volume nor liquidity, just as it's done for IBB .
Current Market Condition: ...
IBB broke the previous upward TL. However, my indicator reached the bounce area, I would expect it to have a bounce to the broken TL for a retest before heading down lower. If breaking the weekly bullish cloud ahead, downside will be greater.
Yet again (markets really are at a critical juncture imo) I can see two possible counts for this index/etf. The red count would suggest a much deeper and longer correction before continuing upwards while the blue count suggests that the rally from June, 2016 was in fact a wave 1 up. Something the blue count does have going for it is that the larger wave 2 ...
Watch closely tomorrow. Bull trap vs bounce off trend line with continuation of current trend. Personally I think the trend continues.
I'm a beginner at volume price analysis. Analyzing the daily bars I feel this opens higher tomorrow. Sell off with wide price swing however was on low volume.
Biotechnology stocks have done nothing over the last 3 years however we now see a breakout and this could present an opportunity to add to a long term momentum portfolio. Please stay tuned, as there could be be many opportunities in the broader healthcare sector.
IBB is breaking out to the upside, with an initial target around $124, the 127.2% extension of the major swing from this year's high in January to the lows in April, followed by the 161.8% at $131.
I'm jumping in via September $125 calls.