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Description of Chart:

The FDA's rejection of Fusilev in October led to a steep sell-off in SPPI and a testing of the 200 day support around 4.30
SPPI traded below the 200 day support briefly as the broader market began to pull back immediately following the steep price drop.

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Written by Gonj
11/02/2009:

Spectrum Pharmaceuticals Inc (SPPI.O) said the Centers for Medicare and Medicaid Services (CMS) finalized a policy ruling to allow reimbursement for the company's cancer drug, Zevalin, effective Jan. 1, 2010.

SPPI is trading up almost 9% as the news has renewed buying interest in the stock.  A close today above the 200 day MA at $4.40 along with the rounded bottom in both the RSI and Stochastic indicators suggest that SPPI is headed higher.  In addition, Apaziquone is currently undergoing phase 3 trials.  Positive results in the near term could help SPPI regain some of the 60% decline the stock has seen since early September.

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Disclosure: Gonj has no position in SPPI.
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