Index futures opened lower Sunday night and dipped below Friday's session lows, then recovered into Monday's a.m. session for a nice rally until Hillary Clinton made a statement regarding Turing Pharmaceuticals raising the price of a drug. This dragged the Biotech's down along with the major indexes. The Russell and the Nasdaq made lower lows versus the S&P and Dow, due to having more exposure to biotech. This is usually a bearish sign however it is mostly due to the amount of the Russell's and Nasdaq's exposure to biotech. Considering IBB fell into a vM target price, and it's Hillary's plan, which is likely extremely flawed, IBB could recover, or even rip back and the other indexes will follow. Although IBB closed down 4.5% near its lows, the major indexes recovered well off their low by the end of day for gains, except for the Russell. They all closed above their 10ma's, a very positive sign. The S&P was up .46%, Nasdaq .04%, and the Dow up 125 pt's for a .77% gain. The Russell closed down .24%.
IBB fell below its 200ma. It hit a vM to 305.55 on Hilary's bio-gate, and triggered a vM to 273.47, it also formed a shorter term vM to 305.33. Watch for Hilary's plan tomorrow and see if IBB recovers or shows more weakness.
IBB Short Term
IBB Long Term
/ES closed above its 10ma. Expecting test of recent highs at 2011.75, and then 50ma/vW target price 2029.25.
The Russell was the laggard today, but it did close above its 10 ma.
Nasdaq
Thew Dow
Nikkei
The Dollar rallied, closing above its 200ma. Is also above its 10ma.
Bonds fell over 1.5% falling below the 10ma.
Gold
Oil closed above its 10 and 50 ma's. The 10ma has crossed above the 50ma.
XLF still below 10ma.
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