Stocks bounced from the opening bell, with the Dow notching a 117-point rise that reversed course as the day went on. A recovery in beaten-down biotech stocks lost steam, sending the Nasdaq Biotechnology Index down 0.6%. The index is down 18% in the last month as we know.
Although the morning rally faded, the SPX still managed to hold that crash low the last couple of days. That is a huge level going forward and needs to hold. If it breaks we go lower, probably down to the SPX 1830 area.
IBB basically gave back about 15 points from the top today. Bearish action as it shows that investors are selling rallies. 5 minute chart below.
Stocks are falling everywhere and the charts look horrific. The market has a lot of work to do and I have zero interest on the long side. Cash and short is still the way to go. I do believe rallies will continue to get sold.
Short term upside target is around SPX 1905 should they decide to bounce them.