Biotech Lift For Real?

Tuesday there was one subsector within healthcare that gained ground, and that was the XBI bouncing off the breakout area of a bullish inverse head and shoulders formation. The IHI fell almost 2% and has now declined 5 of the last 6 sessions as it grapples with the very round 50 number. The ETF has shaved off one-quarter of its value from highs made last September. The IHF, the healthcare provider ETF, fell fractionally today. The PPH fell by .8% Tuesday surrendering its 200-day SMA in the process. The XLV which has a diverse mix of all of these aforementioned groups and supplies and pharma dropped 1.2% after a stern rejection at its 200-day SMA last Friday. The one space within that did advance today was the XBI. The fund has gained ground 12 of the last 16 sessions, and this has been the weakest performer overall by far now off 40% from most recent 52-week highs. Remain constructive on the XBI as long as it CLOSES above 77.50 going forward.

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