February is historically a weak month for the market that sets the bottom for a spring rally. This year, as with the past 4 years, talking heads and so-called analysts are hyperventilating about an imminent crash. Some are even calling for a challenge of 2009 lows. If you look at the weekly chart for both the DJIA and the S&P you will note that the current average is still well above the 50dma and 50wma. At some point a correction is in order with the market bouncing off the 50, which is less than a 15% correction from all-time highs. The February effect should be a swoon to just under the 50 and a bounce that should start the spring rally.
As for the biotech swoon, all the same. Biotech sector has done well through a historically weak fall and early winter. This is the correction ahead of the next rally.
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