Double Bottom Formed In IBB

As we discussed last week, the iShares Biotechnology ETF (IBB) contains a very diverse group of smaller biotech companies with the only large position being 16% in Amgen. It has been a tough year for biotech outside of Genentech (DNA) which has scored two product approvals in the past 60 days.

But now IBB has made a double bottom on the charts at $62 and change, which is just above the 52 week low of $61.22. This could be a sign that the downward pressure on the sector is subsiding.



In Semiconductor land, the iShares ETF (IGW) also held the bottom end of it's recent trading range at $47. Additionally, SMH (the semiconductor holdr) held the bottom of it's range near $30. These two sectors have significant corelation with the Nasdaq index, so if these sectors have found support it should help out the broader indices as well.