Spdr S&P Biotech ETF (XBI)

[TREND1]

BIOTECH ETFS TEST KEY SUPPORT LEVELS... The Biotech SPDR (XBI) and Biotech iShares (IBB) fell sharply over the last few weeks and these two are testing important support zones. Chart 5 shows XBI peaking around 270 in mid July and falling over 10% the last few weeks. Broken resistance, the June lows and the December trend line combine to mark uptrend support in the 230-240 area. A close below 230 would break support and argue for a trend reversal. The indicator window shows the three PPOs representing three timeframes. PPO(20,120,1) represents the long-term (red), PPO(10,60,1) represents the medium-term (green) and PPO(5,35,1) represents the short-term (gray). Only one is bearish right now, but the medium-term PPO (10,60,1) is close to turning negative.

by art hill