A Modest Diversion

The action in HLF and many biotechs today, such as JUNO KITE each down nearly 10%, may very well be providing a modest diversion from the main attraction. 

Specifically, the S&P is struggling to hold above what is turning into a well-defined $201 level on the SPY ETF, seen below on the 15-minute timeframe. Below there, and a gap-fill from Friday awaits. Also note how significant $201 was as resistance earlier this month. 

Without question, into the FOMC and after it tomorrow, this is a level we are watching closely. 

At the moment, buyers are trying to stage an intraday bounce. But the small caps and biotech stocks continue to act lethargically, likely keeping a lid on any upside reversals for now. 

It is also worth noting that TLT has had trouble bouncing from short-term oversold conditions this week with any authority. We covered a short last Friday into that first TLT 50-day moving average /lower Bollinger Band test of the year. But $128 is acting like a brick wall which, again, bears watching into and after the Fed for a potential change in character.