Stocks in the U.S. continued to slide lower on Monday as Wall Street grew more concerned over the economic stimulus plan and the possible government idea to give further aid to the nation's distressed banks.

Despite the continued weakness in the markets, one major bright spot hit the tape in after-hours trading. Shares of biotech company

Genentech

( DNA) traded up after the company said that a late-stage study combining Avastin with Tarceva to treat lung cancer met its primary goal of extending patients' lives while preventing the disease from getting worse. The news also took up shares of

OSI Pharmaceuticals

( OSIP), which markets Tarceva with Genentech.

Investors can look at this positive news in many ways. From a technical perspective the biotech space could now start to gain some relative strength. Relative strength is a measure of price trend that indicates how a stock or sector is performing relative to other stocks or sectors.

When good news starts to hit a sector it can often be an early sign that relative strength is coming as investors anticipate more good news down the road. Once investors jump in, the sector with relative strength can gain momentum and advance higher as market bears are forced to cover any short positions.

Now, let's take a look at four biotech stocks that could be setting up to make a significant move higher if relative strength shows up for the sector (including

Synta Pharmaceuticals

(SNTA)

).

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