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Day February 18, 2010

Sinovac Biotech Ltd (SVA) : Gap Resistance

Sinovac Biotech (SVA) has rallied over the past few days with the broader market.

From the Ichimoku chart, we can see that it is now facing immediate resistance from the gap at around 6.78.

We can also see that the Kijun sen (purple line)  is right at 6.78

Russell 2000 (RUT) : Watching RUT resistance at the kumo

I believe RUT provides a fairly good proxy to the risk appetite of the market.

When RUT starts to slow down on its advance, it is a sign that the broader market is perceiving it as more risky.