Selling Pressure In Growth Names: Amazon, Tesla And IBB

 | Apr 06, 2014 03:35AM ET

Now this most recent drop has come on increasing volume, which is worth noting. As of Friday's close the sector is down around 18% from it's highs and nearing it's 200 day moving average. The way I see it, support at $212 and $202 will be critical for the near term direction of this trend. These levels of course come in as support as previous swing highs but would also match the size (in percentage points) of the biggest drops biotech has experienced since the 2009 bull market began.

It will be interesting to see how this all plays out. I'm always cautious of any market that breaks the rhythm of it's long term trend.

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Written By: Michael Gouvalaris

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