The market caught a bounce this week and it really took a ride yesterday as Draghi took out his QE bazooka to the tune of about $1 trillion. The shortened week started on Tuesday and pretty much followed through from last Friday.
Today seemed to be a consolidation day for the bulls as the market worked off some overbought conditions. As you can see in the chart below, the market broke above a short term downtrend (red line) yesterday . Now we need it to get above the horizontal white line on a closing basis for us to feel a bit more cozy.
The biotech sector (IBB) continued to trudge along and it put in an historic high this week. The index is doing well, but individual setups seem to be a little harder to play than a couple of weeks ago. IBB is still in a very bullish “up” channel and market permitting could make a run at the top of that channel before any meaningful pullback. We’ll just have to see. That come in around 330-335.
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Have a great weekend.