There are some potential bullish developments on the 60-minute charts of the biotech ETFs (XBI, IBB & PBE) worth mentioning. XBI (which tracks the same biotech index as the popular 3x leveraged ETFs, LABU & LABD) appears to be challenging the top of a nearly mature bullish falling wedge pattern while IBB has recent broken out above a descending price channel, also confirmed with positive divergence, on the 60-minute time frame as well.

As I’m being extra selective on establish new positions at this time due to the extreme overbought conditions in the broad market couple with the negative divergences that are still very much intact on the 60-minute, daily & weekly charts of all major US stock indices, I don’t plan to add any of the biotech ETFs as official trade ideas but figured that these developments are worth passing along for those currently long or short the biotech sector.