That seems to be a four-letter word these days. But when judging if that scenario is coming back into play we are seeing it more and more, although the all-clear sign is not here. Below is the ratio chart comparing the more “volatile” XBI to the more “conservative” XLV. For far too long the latter has been outshining biotech, and that could be about to change. The March 2020 lows were tested in early May and the WEEKLY response for the week ending 5/13 was a bullish one, CLOSING 10% off the intraweek lows. The last 5 weeks have given the bears plenty of time to undercut the low 60s area but were unable to do so. This week heading into Friday we are seeing a thrust higher by 12%. If that holds tomorrow it would be the ETFs largest WEEKLY gain since the week ending 9/18/20. The move feels as ferocious as the energy slide in an inverse way of course. Will be interesting to see if this nascent move has legs. Perhaps it is anticipating some shake-ups in the midterms 5 months away.