One month ago the Power of the Pattern shared that white-hot Bio Tech (iShares Nasdaq Biotech (NASDAQ:IBB)) looked to be facing stiff resistance at a very important Fibonacci extension level. (See chart here). At the time, members shorted this ETF and since then IBB is off 14% in the past 30 days.
In my humble opinion, what looks to have takne place this past week is more important than 30 days ago, as IBB on a weekly basis is breaking below its very steep rising channel. This is the first solid close below this channel that saw it rally 100% in a little over a years time.
Could a waterfall pattern be in the making? If this white hot sector cools off, could it impact the broad markets? IMHO it can and is!
END OF THE ROAD FOR THE RUSSELL 2000?
Is this the end of the road for the Russel 2000? The Power of the Pattern doesn't feel like it's the end of the road, yet a cross roads of resistance and a Fibonacci extension level could become heavy resistance at (1) above.
Bottom line...Two high flyers, Bio Tech and the Russell 2000 find themselves at important price points in my opinion.