As you can see, the sector that has been the strongest during this rally in the US market is now the weakest. I have published a week ago a chart with a confirmation of a weekly divergence on the Dow, and I'm waiting for a daily signal on that. This means that I believe a major correction is comming, and taken into consideration that the biotech was the most affected by the previous correction, it may be again the bloodiest victim.
It has taken the biotech sector a longer period to reach 0.618% of the major correction than it took for the correction to happen in the first place (yes, corrections happen at greater speed than rallys, but the difference is too big). The during this rally has been very weak. The sensitive FI barely made it above 0. The slower FI has been in a steady area just above the zero line. All of these facts make the biotech sector very weak. The first ugly candle will confirm this divergence, and we might see this instrument even below 80$. Till then, bulls deserve the benefit of the doubt.