They Looked Down and Got Squeezed

One of the more interesting themes of the current market has been whether he lagging biotechnology issues would being to play catch-up to the indices testing or surpassing their respective 200-day moving averages. To be sure, both the IBB (large cap) and XBI (more small and mid-cap) biotech ETFs are still a good deal below their own 200-day moving averages. 

But some reversion looks to be taking place, as shorts who were "looking down" at the lagging biotechs to press in the hole are feeling some heat today. 

On the XBI daily chart, below, the ETF is off session highs at the moment. However, holding over $50 into the weekend certainly keeps a few squeeze plays on the table into next week, which we are profiling for Members. EDIT is a recent IPO, for example, and is clearing a recent technical base consolidation today. 

Still, we are talking about charts which remains damaged goods on a broader timeframe. So dating them in lieu of buying and holding makes more sense at the moment.