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Biotech charts send warning signal for the market

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

In my June 22 CNBC Pro column, entitled "Biotech bull market intact, buy this ETF ," I said that the price structure in the Market Vectors Biotech ETF (BBH) targeted an additional 7 percent rise to $148 that would remain valid as long as the 50-day moving average contained the ETF on the downside as support.

Although BBH got pretty close to our target, rising by an additional 5 percent to $145.52 by July 20, there is now evidence of a top in this market leader.