We entered a long position in the SPDR S&P Biotech ETF (NYSE:XBI) Thursday at 49.65 for our Model Portfolio.
Friday's pop above 50 could be the start of a potent, oversold recovery rally, however, XBI needs to climb and sustain above $51.70 to trigger meaningful, upside reversal signals -- and to get some powerful upside traction that projects to a test of the prior rally peak at $52.70 -- en route to $56.50 thereafter.
For the time being, XBI is in the turn phase that will complete the most recent corrective leg from the April 7 high at $58.38 down to the $49.00 area.