Few sectors have been hotter over the past few years than Bio Tech.

On the week ending 3/20, XBI created a reversal pattern (bearish wick) at the top of its multi-year rising channel at (1). Since then XBI has been a little soft, where it is testing rising support this morning at (2).

The chart below takes a look at the largest reversal pattern in IBB history that took place last month at Fibonacci Extension resistance with momentum at the highest monthly level in history.

ibbbearishwickatresistancemarch31CLICK ON CHART TO ENLARGE

I remain of the belief that it can enhance portfolio returns by keeping a close eye on leadership. Support is support until broken.

With the S&P 500 nearly flat on the year, this support test at (2) in the hottest of the hot is pretty important!




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