The biotech complex (NASDAQ:IBB) has been struggling recently with the aforementioned ETF being down well over 4% since the 6th of October. In saying this, some selling pressure had to be expected. IBB is still up over 20% year to date which means it has easily outperformed the S&P 500 (NYSE:SPX) thus far. What is apparent though is that the biotech sector seems to be dropping down into a daily cycle low or an intermediate low. Many times in the past, we have seen this occurrence where biotech would either top or bottom before the general indexes. The S&P 500 still clearly remains overbought from a short-term perspective and the question is whether it will follow biotech down into a hard low in the coming weeks.
