123Tom's TA study group

[Citrati]

There is a lot of talk of rotation from tech to bio for sure.
What I think is more important than IBB and XBI is to compare them to $INDU or $SPX.
Basically, bio etf's have been following the market.
With yesterdays gap up in both indexes, a down day today and index overbought signals, I think caution may be needed. If there is retrace/ consolidation in the indexes, bio's would have to run counter market.
While that can happen on an individual stock basis, I personally would not bet on it for the sector.
Counter market usually requires quality and newsworthy events from fundamentals.
If you have a stocharts paid account you will see all ma's and indicators I put together.
Here is $INDU,XBI,IBB.

http://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=0&mn=6&dy=0&id=p28564951038

http://stockcharts.com/h-sc/ui?s=XBI&p=D&yr=0&mn=6&dy=0&id=p75041908145
Note the pole top and the overbought indicators.

http://stockcharts.com/h-sc/ui?s=IBB&p=D&yr=0&mn=6&dy=0&id=p79932061107

The last 2 days IBB candles concern me a bit as possible topping action, especially since todays closing price is basically a potential 3rd top if a horizontal line is drawn to the left from the top of the candle body and not the top of the pole.

Close attention here is needed IMO.