Nice symmetrical setup in biotech. Continuation or a bullish breakout? SPDR Biotech $XBI is currently a momentum leader, on par with broad tech funds at the moment.
The larger-capitalization funds are mixed, with IBB looking more bullish and FBT in between:
Biotech is my pick for one of the sectors that could lead a bull market continuation. Momentum has it right behind semiconductors and housing ETFs at the moment. I do not see a future for this bull market without some major rotation into other sectors.
If that symmetry holds instead, it hints at the market topping soon. Another bearish item: semiconductors and housing were the momentum leaders heading into the fourth quarter of 2021.
