Almost 90 days ago I shared the 3-pack below, where I inverted Google (NASDAQ:GOOGL), Biotech (NASDAQ:IBB) and Tesla Motors (NASDAQ:TSLA), which reflected that each had formed bullish falling wedges. Since the charts were inverted, they were suggesting that each of these three were vulnerable to a decline. In no time each one fell an average of 20% from their highs.
Back To The Retracement
The top chart reflects bounces have taken place since each of these hit lows on 4/15. The rallies has taken each of them back to Fibonacci retracement levels that could become very important.
Price action remains positive in the broad markets (S&P 500 and Wilshire 5000) at this time. Fibonacci doesn't always stop rallies, but sometimes they do. These levels could become very important in determining if the rally from April 15 to now was a bear-market rally or not.
Stay tuned, in my humble opinion these are important levels to watch!