More Ping Pong in Biotech

Just as the ALNY blow-up in the biotechnology arena last week seemed to throw cold water on any resurgence in the XBI (mid-cap biotech ETF), the surge in TSRO today may be reigniting the space to the upside today.

As usual, though, we need to see a bit more confirmation now to disprove the notion we are in a short-term choppy tape with no follow-through either way. 

That said, on top of the some of the more attractive, under-the-radar pays with sound charts, like GLPG NERV, which we have profiled before, a name like XON is peeking back over its 200-day moving average for the first time in a good while, attempting to emerge from a base bottom. These types of charts in the XBI sector lead me to believe biotech bulls have more than a fighting chance for a fourth quarter rally.

But first they must finish off this ping pong game of alternating between sessions where momentum seems gone and suddenly back. 

More on the market in my usual Midday Video for Members.