The weekly chart of the Biotech index kept us on a bullish orientation in the market, frankly for longer than I wanted to have that orientation. Today, the BTK is making a move to break the arc.
Here is the weekly chart we usually review. MACD is triggered down and this makes the test of the arc line different than previous occasions over the last year.
As we noted in #340, the market is rotating leadership to the Internets. Also, Apple reports its quarter this afternoon. The Fed is meeting, data are coming in and in line with this morning’s update, there is just a lot happening.
But taking the BTK at face value, if this does break down the market will have lost probably the leader I have considered the most important in keeping the bull view front and center over the last year.