Beach Ball Held Underwater Effect:
Many have been declaring how well technology has been acting for the last month and a half. And it is with good merit, as Monday followed through very nicely after Fridays cup with handle breakout, and we know the best breakouts tend to work right away. A group that has been behaving even better is the biotechs. The XBI is higher by 10% in 2020, and below is the ratio chart comparing the ETF to the Nasdaq. One can see the strength it has been exhibiting, and Monday the XBI stormed through the very round par number, which has been significant resistance for some time. Going forward that 100 figure should now act as support. The XBI also broke above a 98.86 double bottom base last Friday, after 4 sessions prior were above intraday, but failed to CLOSE above it. Let us give credit where it is due, and keep in mind there does happen to be a lot of biotech within the Nasdaq 100. Names that reside their include AMGN BIIB BMRN INCY GILD REGN and VRTX. The move today certainly felt like a beach ball held underwater, and this move higher may just starting.