So looking at the near term I was wondering, WTF is going on here?  We still need drugs and health care and bio-tech developments...

 

On a whim, I decided to take a much wider look and here's that resulting chart... Note it's a 1-week chart going back almost 9 years but that's what it took to really see what I think is happening... Note how I've 'boxed' the Covid bubble in BioTech, which looking at it now, I really think could be equated to the dot-com bubble and maybe even the AI Bubble we're seeing now in many stocks.

 

Anyway, note the yellow trend lines of highs/lows and also where I've drawn the connections between the RSI and the XBI pricing action at those points... .Looking now, the price isn't just at the bottom of those trend lines but also getting to oversold status as well.  

 

Here's the chart:

 

Anyway, as I've said recently, while the one thing that charts predict best is the past, I do think that it helps to give a long term perspective of patterns... Looking at this one, I almost wonder if we're close to the point of seeing what might be deemed some sort of a traditional sector rotation back to bio-tech. 

 

No guarantees at all, especially since it seems that we've now gone through that Covid bubble that jacked everything up...

 

Anyway, just thought I'd share that and see if anyone else has looked back and seen the same thing... And any other thoughts as well would be appreciated.

 

Cheers all!

 

NOTE: I realize this may be slightly OT, but although there is an XBI board on IV, it's just not very conversational so I hope you don't mind this discussion here.