Note, that i was long but currently am neutral/short on IBB. Some signals for this
1) The two last days form a really long candlestick that has not been seen a long time for the IBB, that worries
2) The bullish flag was broken downwards today, what may indicate further selling (red arrow)
3) Some good sign is that IBB retaliates a bit during Monday (green arrow)
4) It stopped at the previous support today, and went back up just a bit
Basically, another similar day to today and edging below the support line may trigger further sell off. To date it is a considerable correction in itself.
Negative news to this. Markets generally went down/neutral (Dow ending the day in 0). But all the high valuation stocks were suffering losses of price, meaning everything overvalued gets sold off. Biotech as a sector is overvalued, and today's activity signals a possible trend turn (some would consider it already a turn. ) 4 red days in a row may already be worrisome.
1) The two last days form a really long candlestick that has not been seen a long time for the IBB, that worries
2) The bullish flag was broken downwards today, what may indicate further selling (red arrow)
3) Some good sign is that IBB retaliates a bit during Monday (green arrow)
4) It stopped at the previous support today, and went back up just a bit
Basically, another similar day to today and edging below the support line may trigger further sell off. To date it is a considerable correction in itself.
Negative news to this. Markets generally went down/neutral (Dow ending the day in 0). But all the high valuation stocks were suffering losses of price, meaning everything overvalued gets sold off. Biotech as a sector is overvalued, and today's activity signals a possible trend turn (some would consider it already a turn. ) 4 red days in a row may already be worrisome.