Surgical Precision

After flopping around in recent sessions, biotechnology issues are rallying nicely this morning in a red tape, flying in the face of some comments by President Trump which may have been more dovish (regarding this sector) than the market had anticipated. 

The XBI, ETF for small and mid-cap bios, below on the daily timeframe, illustrate the well-define triangle consolidation which has been playing out. After yesterdays weakness, the sector appeared ripe for a breakdown today. 

But buyers stepped in with surgical precision right off that lower support boundary of the triangle. And now the group is a notable outperformer thus far today in an otherwise sluggish tape. 

Moreover, quite a few mid-cap bios are sporting impressive charts which have avoided sustaining technical damage in recent months--BLUE is one such example, quietly basing along with daily chart moving averages lined up neatly below price. 

So while the MA UAA XOM earnings sell-offs are certainly a blemish on the tape, I am looking to see if bulls can hold the biotech rotation beyond a few hours this morning to set up a long or two.