As tension in Ukraine subsided and good economy news trickled in, investors jumped back into stocks market and push S&P 500 index back above 1850 support level. S&P 500 index closed at 1866, up 1.38%,Dow Jones Industrial Average gained 1.485%, while Nasdaq composite increased 0.74% for the week.
S&P 500 index rebounded and closed above 1850 support level showing the strength of the index and suggesting that the uptrend will continue for a while. In the sector fund area, Biotech funds, such as FBIOX and IBB, have experienced selling pressure lately dropping about 10% from their recent highs. Biotechnology funds are top performers last year and had an exponential run in the first two months of the year. It should not be surprise that investors are taking profit to digest the gain. We should, however, monitor and see how FBIOX and IBB behave at their support levels. For FBIOX, an immediate support is at 200 and a stronger support is at 180. For IBB, 230 and 210 are a couple of support levels to watch for.
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| Weekly chart of S&P 500 Index |
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| Weekly chart of FBIOX |
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| Weekly chart of IBB |
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