If This Fails, Biotech Is In Trouble
Chris Kimble | Oct 21, 2016 10:10AM ET
At one point in time, actually for years, Biotech (NASDAQ:IBB) was a market leader. From the 2009 lows to 2015, IBB out-gained the S&P 500 by more than 250%. But since the summer of 2015, Biotech has a leader to the downside. IBB has lagged the S&P 500 by over 35% in the past 15 months.
Is the downside leadership over for IBB? Below updates IBB's pattern.
If IBB is to end its “downside leadership” role, support needs to hold at (1). If triple support fails to hold, it would usher in more selling, which would hit the broad market and risk-on trade.
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