Big Selloff Then a Big Reversal

Dow: +5.17…
Nasdaq: -12.75… S&P: -5.94…

The market gapped lower today then proceeded to really get hammered until about noon time where things double bottomed and rallied to close almost at the identical price of yesterdays close.  The Dow rallied almost 400 points off its morning lows and the SPX rallied 35 handles off its morning lows.  It was quite a turnaround.

10 minute Dow chart

In the end, three S&P sectors finished Thursday in the green — industrials (+0.2%), materials (+0.3%), and technology (+0.3%) — while eight finished in the red. The heavily-weighted financials and health care groups were the weakest performers, losing 0.9% apiece, but no other laggard lost more than 0.4%.

Biotech is sketchy and let’s agree to call 100 bucks a big round number for IBB.

You know that I have been neutral on this market if not bordering on the negative the last couple of weeks.  I’m wondering if today’s morning selloff may have washed things out a bit. We will see what tomorrow brings.

In the meantime here are some charts that look pretty good.

Shorts Ideas

I’m not a fan of shorting biotech, but ALNY broke a major uptrend line and could move to 70 then 55.

SIG- target 30

ESL

Possible 55-60 targets

OSTK 34-31 targets

Let’s see if the bulls can give us a decent follow through day into the weekend.

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