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Who is the Leader of the stock market pack? One candidate would be the Biotech sector, as its been white hot! Biotech ETF IBB has gained 50% more than the S&P 500 over the past year alone.
The left chart above takes a 10-year view of IBB, as its pushed to the top of this steep rising channel and up against a Fibonacci extension level. The right chart zooms in on the action of late, reflecting that last week IBB created an “Engulfing Bearish” pattern at the top of the channel/Fib resistance and this week has created a rather large bearish wick.
Is the “Leader of the Packs” price action reflecting a change of trend? Could be. Joe Friday says…This leader has been a plus to the broad market on the upside, should it turn lower, it could impact the broad market again!