Safety Net?  

When one looks at the biotech space there are two ETFs in which the focus is. The IBB which is a bit top heavy with the more mature names that often pay decent dividends, think defensive. And the other one is the more “lively”, no pun intended with the XBI. One often uses them to gauge risk/reward in the space and the ratio chart here suggests the IBB is getting more attention. It has carved out a bullish inverse head and shoulders and one has to give the nudge to it following the March-April uptrend. Give the XBI credit as it has formed its own inverse head and shoulders formation and the move through 92 carries a measured move to 103, and notice how earlier in May it recaptured the 21-day EMA which is now sloping upward. I think one can have a bullish slant on both, and do not rule out the small caps as the PSCH (small cap, although illiquid, healthcare ETF is looking to break above familiar overhead resistance with the overall small-cap space catching some love).

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