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Wednesday, May 25, 2022

Biotechs rebound and this series is good for the S&P500

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The financial markets have not yet finished digesting the current geopolitical and economic crisis such as the crisis between Russia and Ukraine or the increase in interest spikes. meanwhile read biotechnology they pick up and this could be good for him S&P 500 second Barbara Kollmeyer at MarketWatch.

“Part of that positivity may come from the fact that investors seem inclined to choose higher rates over higher inflation, with the former being seen as less toxic for companies in the long run,” he said. Ipek Ozkardeskaya, Senior Analyst at Swissquote.

While everything can change in a minute, investors might be wondering what will be set up for the S&P 500 based on the upturn in 6% from last week. The MKM Partners Market Technical Manager, JC O’HaraI advise you to pay attention to The Signs of Stabilization in the areas that were first hit.

“And the biotechnology fits that theme,” O’Hara said. “The S&P 1500 Biotech Stock Group is bouncing exactly where it should.” They focus on two graphs, Ionis Pharmacy and modernthe latter who gave a vaccine day presentation for investors on Thursday.

It’s not just biotech. “There are more and more pharma charts hitting new highs on a tape that saw a lot of bearish moves by individual names,” O’Hara noted, pointing to bullish charts for Bristol-Myers Square, corcept therapy, Harmony Biosciences, innovative, Johnson and Johnson, Eli Lilly and company and Pacira Bioscience

O’Hara also likes european pharmaceutical stocks. “While geopolitical concerns remain in the spotlight in Europe, the pharmaceutical industry appears to be a good place to put capital to work.”

See bullish charts on the following names: ALK Abello, Astrazeneca Sp ADS, Bayer, GlaxoSmithKline ADR, ipsen, Novartis Sp ADRNovo Nordisk, Roche Hldg RD, Sanofi and UCB.

As for last week’s 6% rally in the S&P 500, O’Hara said the most positive result was a close above the key level of 4,400.

“The magnitude of the move was impressive, but the levels above are what we need to focus on,” said O’Hara, who said other “bullish action” as the Russell 2000 and the Nasdaq Indices breaking intermediate downtrends. yellow Stoxx Europe 600 it regained a level seen the day Russia launched its attack on Ukraine.

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