Keeping Lane Discipline

Despite another red day, biotechnology stocks in the XBI ETF (for small/mid-cap biotechs) held the $59.80 level, denoted below on the weekly timeframe. 

As long as buyers can defend that level, it is tough to get too bearish on the bios, too soon. 

However, as we noted yesterday, the sector is effectively back in the "neutral zone," below its prior breakout level not just on XBI but also the larger caps in the IBB ETF. 

So although it is a very slow summer session, it is interesting to see quite a few charts, not at this one, at important technical junctures headed into Yellen tomorrow at Jackson Hole.