“Based on the internal structures of the decline from July to August and the more recent decline from mid-September, our Elliott wave analysis suggests that the price of the Biotech Sector ETF (XBI) can reach lower this month. We have calculated some Fibonacci-based support targets for the present leg of the decline near 54.16, 50.86 and 49.70,” according to See It Market.
Healthcare is this year’s second-best sector after being second-best last year, which is to say the group has been an important driver of U.S. equity returns in recent years.
“Breaking above the August low will ensure that the entire move down from the summer high is not impulsive and will allow for price to test higher for several months or possibly longer. So this is an important overhead level to be aware of,” notes See It Market regarding XBI.
SPDR S&P Biotech ETF
