Bio Tech- Market Leadership testing breakdown level

ibb spx near breakdown levels june 21


Bio-Tech was tons stronger than the broad markets from 2011 to 2015 at (1) above.

Once support broke and Bio-Tech kissed the underside of resistance at (2) above, sellers stepped in and this leading upside sector, now has been a leader to the downside since July of 2015. Once weakness started taking place in this sector, broad markets did the same.

Now Bio-Tech IBB could be forming a “Bearish Descending Triangle” with a key test of support taking place right now at (3) above.

No doubt support is support until broken and support still remains in play at (3).

If sellers step forward and IBB/SPX breaks support, it would reflect new found downside leadership from this key sector, which could spill over into the broad markets.

We humbly feel that the next big move to take place at (3), could well impact portfolio construction heading towards year end.


Germany- Leading index creates bullish reversal pattern last week

DAX creates bullish reversal wick near support june 20


DAX Index (Germany) continues its global leadership role.

DAX remains inside of its 5-year rising channel (A). Top of the channel was hit over a year ago. After hitting the top of the channel, the DAX has continued to make a series of lower highs and lower lows, inside of falling channel (B).

Last week the DAX created a small bullish reversal pattern (bullish wick), close to rising support line (A) at (1).

DAX has started off the week with a strong rally at (2), which is impacting stock indices in the states early this morning at (2).

The next big move by the broad markets in the states, most likely will be influenced by the DAX. If the DAX can break above falling resistance line (B), most likely the S&P 500 will follow. If sellers step forward and break rising support (A), it could well drag stocks down with it in the states.

The DAX remains caught between important rising support and falling resistance. What it does with these two, will likely impact the S&P 500 between now and the end of the year!


Gold & Silver- Biggest reversal patterns in years, says Joe Friday

joefriday gold bearish reversal wick june 17


The above chart looks at Gold Futures, on a weekly basis, the past few years.

So far this week, Gold is attempting to form a reversal pattern (bearish wick) at (1). This reversal pattern is taking place at the highs of 2015. If this pattern remains at the close tonight, it will be the largest reversal pattern since the highs in 2013 at (2) above.

Below looks at Silver Futures

silver futures reversal pattern june 17


So far this week, Silver is attempting to create a reversal pattern as well at (1) above. This potential reversal pattern is taking place just below last years highs.

Joe Friday Just The Facts– More often than not, bearish reversal patterns at prior resistance highs, have taken place at very important price points. Will see if its different this time. With “Dumb Money” traders holding the largest long positions in years and smart money traders the opposite, it might pay to keep a close eye on these patterns and the near term price action of Gold & Silver

If you would like to stay abreast of these type of pattern in the Gold & Silver markets, we would be honored if you were a member of our “Metals Report.”¬†