The biotech sector fell today news that Donald Trump intends to sign an executive order demanding that pharmaceutical
companies give the US government "favored nation" prices. The news may not be as bad as it sounds, because Trump is apparently only launching a pilot program that will effect a small number of drugs. However, it's hard to predict the market's reaction to the news. Biotech is still above its trendline
and its MACD
is still above the signal line, so it's still bullish
for now. But it could breach both tomorrow and enter a downturn. Beware if XBI
falls below about 84.90 tomorrow.