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Thursday, February 1, 2024

XBI - Biotech Bear Flag

XBI has developed a bear flag and this is potentially quite a bearish development in the chart. It is starting to see some weakness and may see a deeper selloff soon. Daily

18 comments:

  1. XBI appears to be bouncing up to kiss the broken trendline.

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  2. Some of the stronger tech companies reporting after the bell. Amazon, Apple, Meta. That may help the market rally into next week.

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    1. Sure enough...

      "Meta will pay a 50 cent dividend, its first ever, and has authorized a $50 billion share buyback."

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  3. Then we have a lot of weaker names coming up next 2 weeks.

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  4. Sc when do we start a correction ?

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    1. January went according to plan with SPX sideways until mid-month then rally. I had figured SPX could trend up until March.

      SCDecember 28, 2023 at 12:09 PM

      "SPX may be in a waiting pattern until the 2024 GOP presidential primary kicks off January 15th with elections in Iowa and then New Hampshire"

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    2. But there are some warning signs as SPX is getting overbought. I noticed Friday UVXY held it's ground quite well. SPX is getting more volatile with gap down Wednesday and then 100 point rally back.

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  5. DWAC reached $45 target. It may fall back to test support $32.

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  6. SC do you think we reach 5400 or higher this year on the SPX?

    Thanks

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    1. This week we have seen further confirmation of my SPX model. According to plan SPX has reached 5,000.

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  7. Sami it may be possible but SPX has taken 2 years to reach 5,000 from the 4,800 in 2021! So it's incredibly weak.

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  8. SC hen do you see a start of a correction and to what level?

    Thanks

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    1. I am watching something big that is coming. This is an earthquake that is about to happen this year. It's not SPX but it will have important implications for the market.

      I'm getting the charts ready so I'm waiting but let's get ready soon.

      I've checked and nobody is positioned for this move.

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  9. SPX 5,000 but with that a big problem. Mortgage rates are rising again with massive amount of resets coming due.

    "Mortgage rates jump back over 7% as stronger economic data rolls in"

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  10. The choice for homeowners will be whether to walk away from their house or to sell their investments in the stock market to raise cash.

    It is obvious what the decision will be...

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  11. As the stock market rises so do rates thus tipping the economy into recession.

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