The Rising Fall Sector Foliage

An opening bounce on the major averages is morphing into an early grind, as the pertinent issue for equities remains whether bulls can continue to sustain adequate sector rotations to stave off a much-anticipated pullback. 

Earnings season in October would, logically, seem to be the time for an extended market to correct. However, this market has shown time and time again that it is surely capable of defying what seems to be logic. Thus, a flexible approach is still advised. 

Netflix will kick off the heart of earnings season for major tech leaders tonight. While I would not be surprised to see some profit-taking even on a good report, my focus is, again, on ancillary sectors and whether they can maintain their recent strength. 

Case in point: The small and mid-cap biotechnology issues of the XBI ETF. Many XBI names have been tightening up their respective daily timeframes.

And we want to see whether basing names like the Biogen spinoff, Bioverativ Inc., below on its daily chart coiled under $60, can make a breakout push before October 26th earnings. Indeed, beyond the one-off moves like EXEL we have a list of names for Members in this sector which are rather well set-up here if bulls can sustain the rising fall sector foliage.