Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.
XBI Acts Well, But The Pattern Argues for Upside Acceleration Much Sooner than Later
The weakness in SPDR S&P Biotech ETF (XBI) from its Apr 7 high at 58.38 into the Apr 12 low at 53.42, followed by an upside pivot reversal into today's high at 57.04 has the right look of a classic "retest of a prior upside breakout plateau" and a resumption of the underlying potential off of a base formation.
In this case, as long as XBI remains north of 53.42 support, the price structure continues to point higher-- towards my optimal upside target zone in the vicinity of 60.00 to 62.00.
Given the juxtaposition of my near-term momentum work with the rising price action, XBI should accelerate to the upside in the hours directly ahead.
If it fails to do so, I will be tightening my protective stops.
