The markets are lower today due to earnings releases from Visa (V), and Amazon (AMZN) last evening. AMZN in particular, did not have a great looking report. Geopolitical factors are also keeping the market lower before the weekend.
The S&P broke out of the trading range this week to set a new high, but quickly gave back those gains, to once again fall into the previous trading range above. Technically, this is known as a false breakout move.
Above is a weekly look at the index that Acadia is highly correlated with, the biotechnology index (XBI). On the week, the XBI and ACAD had a good week. Biotechnology had a strong week as a whole compared to other market sectors.
ACAD is trading just above a support area of $20.20. The volume has been below average, which can be expected for a mid-summer day, for a stock with no catalyst in the short term. I rate the chart as neutral.
Bottom Line: The S&P 500 did break out of a three week trading range, but fell back into the range today, as earnings reports and conflict outside of the US before the weekend has traders taking some risk off the table. Acadia has been trading with below average volume, but has been a steady stock in the $20.00 to $21.00 range, on a week that the biotechnology sector was a strong performer. Thank you for reading.