Video Chart Analysis on XBI, XLF, DJ Trans Index, and BPTH

Our Stock Waves Charts of the Day video from Wednesday night covers SPDR S&P Biotech ETF (XBI), Financial Select Sector SPDR ETF (XLF), the Dow Jones Transportation Index and Bio-Path Holdings, Inc. (BPTH). 

XBI has had 5 waves up off the January 23 low.  There's not a clear confirmation of the top yet.  A move lower that holds 88.50 region or even down into the 87's could lead to one more spike up towards 96-98 region to further complete this move.  But it is forming a top into the resistance region of the 90's in what could be a major high before turning down into the 60-55 region.

XLF is also forming a top, and started to show some signs of weakness Wednesday.  It has had 5 waves up off the early Jan low in what could be a top, especially as the 5th wave got close to the 76.4% retrace.   If so, then watch for a B wave down, with support in the 23's.

The Transportation Index is also leading the way as far as weakness goes.  The index moved up on Fed news Wednesday in a small corrective bounce, but we're eyeing a move lower.  If it starts to break under 10,050 again and under 10,000, then it should be well on its way to starting that larger (C) wave down.

BPTH was a recent high flyer but has since pulled back.  The set-up technically didn't invalidate, but the stock should have rallied strongly from the 30 region earlier this week and had an opportunity to do so on earnings.  But instead it drifted lower, and now we're looking for a possible extension down to 17 before the next potential set-up for a move higher.

See our Charts of the Day video here. 

Zac Mannes is a senior analyst at ElliottWaveTrader.net and co-host of the site's Stock Waves service, which provides wave alerts and trade set-ups on individual stocks.