Since September 19^th, the S&P 500 has only had 6 up days. Two of those up days were gains of less than 3 points.

Of course, when the market declines in such a fashion, it’s hard to find too many stocks that are bucking the downtrend.

However, at some point the stock market will turn and most stocks will turn with it. Keeping tabs on initial breaks of resistance could be a great way to get a heads up on those turns when they first get started.

One biotech name that seems to have made the turn is Celldex Therapeutics.

Celldex focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States.

The company has research collaboration and license agreements with Amgen Inc.; Amgen Fremont; Seattle Genetics, Inc.; and Bristol-Myers Squibb Company.

Take a look at the 1-year chart of Celldex with added notations:

Celldex fell off a cliff in March and April to the tune of an almost 70 percent loss in value. The stock had hit a high of almost $33 before bottoming at just under $11.

Since then, the stock has been trading primarily sideways by recovering up to as high as $18, while declining to a low down at $12. The $12 support has been tested on multiple occasions.

In addition, Celldex had formed a trendline of resistance over the last 2 months, and yesterday the stock broke through that resistance. Typically, this is the sign of higher prices to come.

The stock closed yesterday at $13.82.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.