We've had the nagging feeling for some time now that the biotech sector isn't undervalued, and that the invisible hand has brought stock prices to more realistic levels than the industry would like to contemplate.

Not being market technicians, we can't hazard a guess as to whether the sector is building a base for a sustained advance later. But it's hard not to notice in the Second Quarter charts (see page 7) a monotonous regularity in price and volume behavior. Weekly volume of the BioCentury 100 is way down over the First Quarter, when investors dumped shares and departed for multimedia or whatever other alternatives