A short-term breakdown is in the works for the Biotech SPDR. The ETF returned to broken support and this zone turned into resistance as a bearish engulfing formed on Friday. The ETF followed up this reversal pattern with a trend line break on high volume. This break signals a continuation of the early October plunge and targets a move to next support in the 112.5-115 area.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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