Biotechnology (IBB) Receives Silver Cross Buy Signal | decision point

Today the 20-day EMA of the Biotechnology ETF (IBB) crossed the 50-day EMA (silver cross), creating an IT Trend Model buy signal. A look “under the hood” shows that participation continues to expand. The Silver Cross Index tells you how many stocks within this group have a 50-day EMA or a 20-day EMA that is higher than the Silver Cross. Although it does not exceed the bullish threshold of 50%, it is rising significantly above the signal line.

The first indicator is also positive. RSI is not yet overbought. PMO has a Crossover BUY signal and is rising above the zero line. Stochastics is above 80, indicating internal price strength. We should see this group continue to outperform SPY.

The weekly chart shows a weekly PMO rise, but we note that indirect resistance is getting closer and stronger. You may see the price wavering around that level before a possible breakout occurs.

conclusion: Biotechs have seen the Silver Cross. Internal engagement indicators are improving and fundamental indicators are optimistic enough to see upside.

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