We tagged a new intraday all time high on the $SPX today and then bids got hit.
Today was a wild day. Quadruple witching and biotech got bludgeoned like a baby seal. It happens. I have been watching that 50 day moving average on the $IBB and it was taken out like Grant took Richmond. The break in biotech was basically started by…wait for it……. Washington DC, as Henry Waxman thought $GILD was charging to much for pills.
The biotech index that I follow, $IBB, was down $12, almost 5%. Huge knockdown. It also broke an uptrend line that has been in place since the Nixon administration. Volume was almost 3x the average 50 day volume. You need to respect that, just like you would respect an upside breakout on that kind of volume.
Tough day. I’ll try to throw some thinking and setups out tomorrow. Have a great weekend.
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