Wednesday, August 26, 2015 12:59:50 PM
I've been watching the broader biotech index XBI-- it's even weaker than the large-cap focused IBB, already down a few minutes ago to 1.2% in red after earlier being up well over 2% in the green. Yesterday it looked very weak, losing almost all its morning gains.
I'm not sure where the bottom is here if XBI falls down again to reach its steeply descending lower Bollinger band... it may go to sub-200 area again as happened Monday.
What concerns me is that Wilder ADX "trend strength" indicator. We're definitely in a strong trend (25 is the threshold for "strong trend" and the indicator is now over 38), and that trend is obviously DOWN... STRONGLY.
XBI has already "corrected" by nearly 25% from yearly high around 272. Is this going to fall 30%, 40% or 50% if general markets fall into a bear market, not a mere short-lived "correction"?
I'm not sure where the bottom is here if XBI falls down again to reach its steeply descending lower Bollinger band... it may go to sub-200 area again as happened Monday.
What concerns me is that Wilder ADX "trend strength" indicator. We're definitely in a strong trend (25 is the threshold for "strong trend" and the indicator is now over 38), and that trend is obviously DOWN... STRONGLY.
XBI has already "corrected" by nearly 25% from yearly high around 272. Is this going to fall 30%, 40% or 50% if general markets fall into a bear market, not a mere short-lived "correction"?
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
