Saturday, February 27, 2016

Week in Review: Biotechnology ($BTK), Energy (XLE), Financials (XLF), Gold Miners (GDX), Semiconductors (SMH), Short High Yields (SJB), Small Caps (IWM), and the S&P ($SPX)

A lot has happened this week and it will continue happening. The G20 is currently meeting with a statement to be made tomorrow, the European Central Bank is meeting on the 10th, the Bank of Japan on the 15th, the Federal Open Market Committee on the 16th and finally OPEX on the 18th. We have a very busy schedule this month. Meanwhile this past week has generally been positive but I have noticed a lot of bearish ascending wedges going in, albeit with plenty of room for upside movement. Below are a choice collection of some interesting patterns developing on the 30 minute charts for various equities.

Biotechnology: $BTK
I think there is still upside possible but it appears like an incomplete bearish wedge is going in.
Energy: XLE
It's hard to say if this is an bullish ascending triangle or a bearish rising wedge. There's a lot of resistance at $59.00 coming up on the daily chart and the 30 minute chart just doesn't look like it's going to break up.
Financials: XLF
Massive bearish ascending wedge going in but there is still plenty of upside in the meantime.
Gold Miners: GDX
Bearish ascending wedge that broke Friday - nuff' said.
Semiconductors: SMH
Another large bearish ascending wedge with plenty of upside still possible before it breaks down.
Short High Yields: SJB
Bullish descending wedge with a little room still to go down.
Small Caps: IWM
Another very large ascending bearish wedge has appeared. A little more room still present for upside movement.
Finally, the S&P ascending bearish ascending wedge which still shows a very healthy ascent.