Into Outer Space

The wildcard for this market continues to be whether we see the multi-year winning biotechnology stocks stage a "blow-off" higher before we see some type of standard correction on the S&P 500 Index. 

On the IBB, biotech sector ETF, quarterly chart below, note that price is pushing the upper Bollinger Band. In addition, with today's rally the IBB is pushing the upper Band on the daily, weekly, and monthly timeframes. Even so, if this is a true melt-up then that overbought condition after a prior run-up can exacerbate itself and last several more days. 

Specifically, the likes of AMGN REGN are illustrating why shorting the biotechs has been a tough gig, despite how ripe they have appeared to come in even for a modest correction. 

If the blow-off into outer space materializes out of this overbought condition, keep an eye on biotech RARE as a long idea over $59.30. The stock is basing quite well and not extended.