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! 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past