The Nasdaq Biotech ETF $IBB saw a knee-jerk reaction lower yesterday after firm comments from President-elect Trump on current drug pricing.
It was the laggard on the day and finished lower by -2.99%.
That sell off, while sharp, retraced less than 50% of the gains made from 2017 as the Biotech sector had been higher every single day (6/6) until yesterday.
Today, after the dust has settled, buyers seem to be picking up right where they left off. We’re higher today despite all of the major averages meaningfully in the red.
This bounce is occurring right at the rising 8/20 period EMAs which coincide with support in strong trends.
The news story on this sector is “risky” but the near-term price action tells a different story.
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