Biotech full of magickal hope and promise which will extend our lives and make the sky bluer and more sunny every day. At least that's what Wall st has used as a sales line to get hapless investors to buy into the dream (AKA con game). I am on record many times saying that there is no panic until biotech sees panic.
My current model is below and you can see that it is tracking the movement of the broader indices pretty well. One more wave lower to a lower low will confirm the bear market for IBB. In fact, below is the conservative shorting model. What I have labeled as blue 3 below could in fact possibly be counted as red 1 and the recent rally to blue 4 might be red 2. So after we get the lower low into what is marked as blue 5 we have to watch carefully to see if the rally is going to be a big a-b-c into currently marked red 2 OR whether it will be a small 3 wave move to lime green 4 indicating that the move down from blue 4 to the bottom wasn't just 5 of 1 but in fact 1 of 3. If this more bearish case is the model being followed by the herd then 3 of 3 would occur into mid OctoBEAR (sic).
Time will tell but I'd be selling the peaks on this. Trees do not grow to reach the sky.
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