Biotech could levitate on higher in the coming week but probabilities say no.
The chart (expandable version here) prints slowing upward energy since April, this year. It’s clear that each upward thrust has produced less net gain.
The first upward thrust from the end of March to late April, was a solid 28.7%.
After that it was 6.78%, then 2.31% and now last week, all the index could manage was 0.50%.
At this juncture, biotech appears exhausted
Anything can happen. Price action can move higher in the coming week but it’s a low probability.
A quick internet search of ‘going short biotech’ turns up nothing recent except for this article from May, this year.
The chart of IBB shows the location of the linked article; Just towards the end of the first solid upward thrust.
That was then, this is now
Subsequent thrusts have lost energy. It looks like we’re at an inflection point.