IBB, LABU updates 03/06

I’ve combined both into one update as both track the same sector: biotech. Yep, that’s two for the price of one 🙂 The daily IBB chart shows the micro-count, which can be applied to the monthly LABU chart, which shows bigger picture overview.

What’s clear is the entire advance off the low made in 2016 is overlapping, ugly and not an impulse. Looks much more corrective than anything else. $100 for he/she who can make this a none-overlapping 1,2,3,4,5 😉  But, the long term trend remains up, which needs to be respected. Hence, the wave-count shown is the best I can do in trying to make something edible out of this soup.

IBB daily

The monthly LABU chart shows price has reached the target zone typical for a B-wave, though ideally one would really like to see it move to the 50 or even 62% retrace. But 38.2% will do. I would not be surprised if the advance is over, as the daily IBB chart indicates.