The Dow Jones Industrials made a new all-time high alone today, but most of the broader markets and sectors has a good day Monday. The Biotech Sector ETF symbol XBI broke-out above its resistance and there is no immediate resistance nearby. The Healthcare Sector ETF symbol XLV also moved higher and looks like it will continue to do so. Jumping on this moving train may be the only way on, but if it there is a pullback to hourly support that would be preferred. See the charts.
Chart of XBI
Above is the chart of the Biotech ETF symbol XBI. It broke-out above resistance Monday and closed near the day’s high. This type of Wide Range Bar (WRB) breakout signals higher prices – and ideally, prices do not retrace more than 50% of Monday’s range. WRBs are often followed by narrow range bars that stay in the upper 50% and ideally the upper 3rd of the range.
If XBI pulls back into the green box on the intra-day chart that would be a reasonable retracement area to enter.
Chart of XLV
The Healthcare Sector ETF symbol XLV moved higher as well and has been leading. We cannot jump on a moving train, but will consider an intra-day pullback. We will monitor XLV and XBI and send an update tomorrow. Most likely before mid-day.
Chart of XLF
The Financial Sector ETF symbol XLF barely cleared the recent highs, but looks higher. Citi (C) that has been leading took a backseat today. After starting out well, it fell back as others in the sector stayed strong. We’ll see if it can catch up and help push the sector higher.
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director Master Trader
Founder of the Pristine Method and Pristine Trading
Dan Gibby
Chief Options Strategist
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