Biotech delivered a buy signal on Tuesday.
Biotech has been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Biotech formed a daily swing low on Tuesday. Forming a swing low above the lower daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal. Long entries can be entered with a stop at Monday’s low.
Thanks – this makes sense but do we need to consider also that stocks are on their way to a DCL at the moment ? Could further downward movement on the SPX towards the inclining trendline also drag XBI down with it ?
The XBI swing low just under the trend line seems to be at odd with this.
Thanks
Eric
You are correct that stocks still need to print their DCL.
However, it is not uncommon for a one asset class, such as Biotech, to bottom early.
LM
Cycle Trading 
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