I think you can see on the sector ETF daily chart below that if the market is going to rally to new highs here then the biotechs are likely to be hanging out in the back of the movie theater watching the show. After quarters, if not year, of outperforming, simply put the large biotechs are tired here. In addition to transports, biotechs may very well be leaders stepping aside.
Also, I mentioned Amgen last night and its “Barron’s Bounce” from the weekend is not very impressive. Still, no short trigger yet until it either gets rejected at $103 or rolls back over before.
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