Biotech sector is nearing a significant base relative to Nasdaq, Brandon Beylo points out

Biotech sector is nearing a significant base relative to Nasdaq, Brandon Beylo points out
Biotech chart signals sector rotation

Brandon Beylo highlights a ratio chart comparing the performance of the biotech sector, as represented by XBI, to the Nasdaq index, represented by QQQ.

According to Beylo, this chart is forming a 3-year inverse head and shoulders base. He suggests that a major rotation into biotech and healthcare could be forthcoming if this technical pattern completes.

Beylo previously observed strong activity in biotech stocks during volatility around the FOMC meeting, describing it as a sign of potential market strength in the sector here. In addition, he recently suggested that gold prices could still decline to $3,800 per ounce before finding a bottom here. These views reflect his continued focus on technical signals across asset classes.

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