Biotech Breakdown: Market Breaks...Gilead, Kite Pharma & Biogen Idec Worth Watching

This article is the opinion of Christian Tharp, CMT, author of 5 Star Trading.

The full video can be seen here; a summary is below.

Market Analysis

• The S&P seems to be taking cue from the DOW at this stage
• The DOW broke trendline support, which implies a lower overall move. Recent rally was bigger than expected, but a solid move back below the trendline (17300+/-) should confirm the forecast for a lower move. First target down would be 16600+/- (channel support)
• NYSE testing triangle support

Biotech

• iShares NASDAQ Biotechnology Index (ETF) IBB completed the "throw-over" to its wedge pattern
• Gilead Sciences, Inc. GILD broke back below 105
• Kite Pharma Inc KITE broke 70
• BioDelivery Sciences International, Inc. BDSI couldn't break 14
• Biogen Idec Inc BIIB and Intercept Pharmaceuticals Inc ICPT both pop big
• Pacira Pharmaceuticals Inc PCRX tests 52-week high