Opportunity Shifting:

Are the winds of change appearing in the diverse healthcare space? The XBI which is thought of as the more “equal weight” biotech ETF is encountering some turbulence above the very round 90 number altitude. Where a handle looked like it was developing it has now become too long in the tooth to be recognized legitimately. It is now lower 7 of the last 8 sessions, although it is finding some support at its 50-day SMA, but now back into the good-looking symmetrical triangle it broke out from on 1/12 and we know breakouts that rapidly fail are red flags. Some names that have made notable technical moves include ARWR which seems stuck in this round 30-40 number range and INCY which recorded a nice cup base breakout, but it quickly unraveled. The chart below shows the IBB catching up in PRICE, and is it because of XBI fragility or on its own merits? The IBB full of “mature” holdings, is just 4% off its most recent 52-week highs and is still within a bullish ascending triangle with a 138 pivot, whereas the XBI is now lower by 12% from its annual peak. Risk appetite in the biotech arena may be waning.

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