Today the Biotechnology ETF (IBB) 20-day EMA crossed up through the 50-day EMA (Silver Cross), generating an IT Trend Model BUY Signal. If we look “under the hood” we can see that participation continues to expand. The Silver Cross Index tells us how many stocks within this group have a 20-day EMA above the 50-day EMA or a Silver Cross. While it isn’t reading above our bullish 50% threshold, it is rising strongly above its signal line.
Primary indicators are also positive. The RSI is not yet overbought. The PMO is on a Crossover BUY Signal and is rising above the zero line. Stochastics have camped out above 80 signaling internal price strength. We should see this group continue to outperform the SPY.
The weekly chart shows a rising weekly PMO, but we do note that overhead resistance is nearing and it is strong. We could see price stumble at that level before a possible breakout.
Conclusion: Biotechs saw a Silver Cross. The participation indicators under the hood are seeing improvement and primary indicators are bullish enough to look for some upside follow through.
If you like this “under the hood” chart then you would love a subscription to DecisionPoint.com. You’ll get access to all of our “under the hood” charts that include all the major indexes, sectors and select industry groups! Use our coupon code: DPTRIAL2 and try us out for 2 weeks FREE!
Learn more about DecisionPoint.com:
Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!
Try us out for two weeks with a trial subscription!
Use coupon code: DPTRIAL2 at checkout!
Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2024 DecisionPoint.com
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.
Helpful DecisionPoint Links:
Price Momentum Oscillator (PMO)