{+++}Momentum names continued to trade sloppy today and the biotech sector continued to get hit. The biotech ETF IBB that we follow couldn’t make new highs (see lateral white line) and now looks like it is in a bear wedge. IBB could go down to 195 (about 10 points) and still be in a very bullish uptrend.
The financials look weak here and are correcting. Just look at the daily charts of BAC, C and JPM. No big damage at all.
The SPX has support at the spot where it broke out, so if it wanted to, it could go down and test that area. That is right around the 1730 area.
It’s natural to pull back from all time highs and the market is still very bullish for now. I added new name NOW to the P&L as a long today. Hope you had a good day and I’ll see you in the morning.