Indexes are bouncing from over-sold.
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First day of new $QQQ short term down-trend; GMI at 2; Bio-techs, including $INGN resilient but has difficult announcement today
IBD still sees “market uptrend under pressure.” With the GMI now at 2 it could flash a Sell signal with a second day below 3. The QQQ short term trend is now down but about 40% of these down trends since 2006 lasted 5 days or less. An indication of strength is that the biotechs came through this period strong. Fourteen biotechs hit new highs on Wednesday. Some of them that I have been following for a while and that are in strong RWB up-tends include: CBMG, TSRO, UTHR, QURE, ANAC, INGN , BLUE and RCPT. Last December I wrote about INGN as a stock my stock buddy, Judy, had talked to me about. It was then at $30.25. It closed at $37.34 on Wednesday. The GMMA chart shows a nice RWB pattern and a green line breakout (GLB) to an all-time high in November. Way to go, Judy!!!! (After this post was first released, I found that INGN released some difficult news that is causing the stock to decline premarket.)
With the leading industry, biotech, (see industry chart below) still showing strength, this bull may only be resting.
24th day pf $QQQ short term up-trend; 4 stocks hitting new highs during the decline
IBD sees market uptrend under pressure and says the put/call ratio reached 1.13 on Tuesday. This is possible bounce area. The QQQ short term trend could turn down with another weak day on Wednesday. Thus far, this decline has been mild. Check out this GMMA chart of the QQQ. (Click on chart to enlarge.)
Four stocks with good fundamentals hit new highs on Tuesday: UTHR, AMAG, MDVN, SWKS. All have RWB patterns. Could these be future leaders? One example, UTHR. Note the green line break-out.
Can’t have a much more consistent RWB chart than SWKS:
I’ll leave the other two to your imagination.