IBB, XBI update 09/01

With the renewed rally in biotech it’s time to update the biotech ETFs.

IBB: surpassed my previous forecast as wave-c subdivided. Those subdivisions can only be anticipate, never forecasted. Hence, the prior peak was minor-a of intermediate-c of major-b of what I see as a large primary B: counter trend rally of the mid-2015 decline to early-2016 low (not shown here). Why? Because this whole advance is so overlapping that it simple doesn’t have any impulse characteristics.

IBB daily

Hard to tell exactly therefore where IBB will top, but assuming a c=a relationship, then ~$370 seems very reasonable.

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XBI: Also here the long term picture remains unclear if we’re dealing with a new impulse up (1,2,3) or only a counter trend rally (a,b,c). For now, price is in intermediate-v of major 3/c and in even more detail in minute-iii of minor-3 of that intermediate-v wave. Thus price will still go higher after a minute-iv, v, minor-4 and minor-5. since minor-3 extended, it’s a bit hard to say where prices will bottom and top, but assuming intermediate-v equals i ($15) than we should see $89 when all is said and done (iv was at $74, and $74+$15 is $89, which is very close to the prior top in 2015.

XBI