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Biotechs sector has shown a lot of accumulation and is now strongly trending up. There has been no distribution in the biotech sector and with Gilead paying 12 billion for Kite Pharma speculation seems to have taken over. For zman's scenario to play out watch the bio techs, if these have a climactic reversal on high volume, then a bearish market is likely. Unfortunately for the bear scenario looking at the weekly charts of IBB, LABU, XBI etc show biotechs breaking out of trading ranges with the possiblity of much higher levels. For zmans scenario to play out I believe biotechs have to reverse here and revisit the bottom of the trading range. Other high beta sectors like semis, FANG stocks indicate resumption of their uptrends. With these many bullish chart patterns I have a hard time seeing zman's bear scenario play but I have a lot of respect for his work so though I am long I will not hesitate to reverse my positions if I start seeing reversal tails.
the gapper upper and volume spike look more like an exhaustion gap and capitulation by worn out shorts who just want to go to the beach and party and watch football and lick their wounds. could be just a second retest of the resistance box defined by the 7/27 and 8/8 candles.
(if i do not reply, it is because some here are on "ignore." it's not personal, just business.)