The previous IBB cycle involved a top at $400 with a steep drop to a bottom at $284. Soon after this bottom, the market gave 2 simultaneous BUY signals when and rose left oversold areas on the same day (see the purple circles with green vertical lines).
This was followed by a two-week uptrend (purple line). This uptrend ended shortly after IBB had retraced 61.8% of the big drop, getting back up to $366. At this point, IBB gave 4 SELL signals. The first signal was the . Second, the purple uptrend line was broken. Third, left overbought levels. Fourth, broke a rising (purple).
This was followed by a very quick and steep drop down to 285. IBB then gave two BUY signals when and left oversold levels. The next phase was similar to the first one, with a fairly steep retracement back to the 61.8% levels. That was the first SELL signal. The second SELL signal was the blue uptrend line has been broken.
With this evidence, I am willing to risk calling a short, even though and have not yet confirmed a SELL signal. I expect that a steep drop tomorrow will cause these SELL signals to be initiated. (See my empty purple circles where I expect them to occur.)
I have placed my stop loss right above the nearby high at 341.25.
I wish everyone the best with this trade!