One group of stocks I am watching closely right now is biotechs.
Despite the industry's lackluster performance over the previous three months, I think biotechs are brewing up something big.
Here’s the equally-weighted SPDR Biotech ETF $XBI.
XBI has been consolidating in a narrow range, and holding just above the breakout level from a multi-year base.
Given all the price memory around this area, it’s an ideal spot for buyers to step in and spark a rebound rally.
If it happens, we'll be looking for XBI to break out of this triangle pattern, which would confirm a reversal of the primary trend. This would also position the entire biotech space to attract some bullish rotation.
Maybe its getting underway now. Biotechs were on fire today with XBI closing higher by 2.30%.
