This Market Needs a Kite Experiment

Much like Founding Father Benjamin Franklin, we may need to experiment with a kite in this market to see how much electricity it can conduct. 

Specifically, KITE, a mid-cap biotehnologu stock, is sporting an attractive daily chart (below) in front of May 8th earnings. This chart is clearly one of the better XBI plays which have held up well into the recent biotech underperformance.

But beyond KITE per se, is the issue of whether biotechs as a group can sustain a rotation, for that would likely add a bullish dimension to the sizable gap higher today in the market. Just as with energy, if biotechs can hold the line that would be a baseline case for bulls at least keeping the broad market afloat. 

However, should the KITE experiment pan out in favor of bulls, along with other bios, it may very well cause electrical shock to the tape for a fresh leg higher. 

More in my usual Midday Video for Members.