Amid ASCO, XBI Ends its Early June Upleg. Now What?

Our Model Portfolio exited (was stopped out of) the SPDR S&P Biotech ETF (XBI) this morning at 70.88. We entered the position at 69.50 on June 1. My work is awaiting the conclusion of the current pullback to reenter the long side of XBI.

Let's notice that earlier in today's session, XBI gapped up towards heavy March-May resistance between 71.80 and 72.60, and abruptly reversed into negative territory, effectively stalling its most recent upleg from the May 31 pivot low at 66.66 to today's high at 71.75 (+7.6%).

My pattern work argues that the May 31 to June 5 upmove represents the initial advance of a new upleg that should take out March-May resistance, which will unleash powerful upside follow-through towards a target zone of 75.00-76.00.

My near-term work indicates that after this pullback runs its course, XBI should turn up again with power to start the trek towards 75-76. Only a plunge that breaks 66.66 will invalidate my current technical set-up.