Likewise, the health stock market sector lost its status of outperformer as the XLV ETF went from 75 points to 62 points. Note that biotech is part of the health sector (XLV).
Biotechnology is now showing the first signs of life. The IBB ETF is up 3 percent on the week.
We warned readers to watch closely the 250 level in this alert: Biotechnology and Health Sector Testing Long Time Support. Later on, we noticed that biotech refused to break down, and started to show a pattern of higher lows. Right now, the biotech stock market sector is testing a breakout level. Things will really get bullish once 300 points in the IBB ETF is cleared.
The iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) fell $1.78 (-0.61%) in premarket trading Friday. Year-to-date, IBB has gained 10.40%, versus a 5.01% rise in the benchmark S&P 500 index during the same period.
The broader healthcare sector (XLV ETF) looks even more interesting. It recovered its losses, and is now ready to test all-time highs. Make no mistake, 75 points is a very important price level. A triple-test is significant as, mostly, three tests are sufficient for a breakout. However, a failure to breakout, after 3 tests, is bearish to say the least.
The Health Care SPDR ETF (NYSE:XLV) was unchanged in premarket trading Friday. Year-to-date, XLV has gained 6.70%, versus a 5.01% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Investing Haven.
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