The Nasdaq Biotechnology ETF (NASDAQ:IBB) saw a knee-jerk reaction lower Wednesday after President-elect Donald Trump made harsh comments about drug pricing.
On Wednesday, it finished off by -2.99%.
While that decline was sharp, and may have hit a few traders, there was a silver lining for opportunistic traders (and I shared this yesterday on my blog): the decline was overdue as Biotech was up 6 days in a row prior to (and traded higher yesterday and is today). The decline also represented a retrace of less than 50% of the gains made in 2017.
Nasdaq Biotechnology ETF (IBB)
Since Wednesday’s selloff, buyers seem to be picking up where they left off. The Biotech sector (IBB) was higher again yesterday despite all of the major averages trading in the red. And it’s green again today.
This bounce occurred right at the rising 8/20 period EMAs which coincide with support in strong trends (see chart above). Looks like it wants another shot at the downtrend from September 2016.
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Twitter: @EvanMedeiros
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