IBB Historyif you look at the chart of the IBB from 2001 forward it has dipped back to the 1,000 dma 3 or 4 times with the most recent of course being 2008/09, then 2011 and with the latest as 2015.
in the past, the index never reached anymore than about 40% to 50% above that 1,000 day average. it briefly got to almost 2 times the average in early 2014 but quickly got knocked back to about a 50% premium to the average and skidded on the 200 day. that was a short breather.
from Q2 2014 though the thing went crazy and got to more than a double of the average in August where it really crashed as we all know. this time it blew through the 200 dma and we are still some 25% below that average.
the money that went into this during that Q2 2014 to Q2 2015 was massive and just like the 2008 wipe out, or the 2001 tech wipe out, it will take more than a few quarters for this index to recover.
we have not, nor do i think we will breach the 1,000 dma having just gone back to retest it in the last weeks. there may be limited upside for a while but i think the downside is bottomed.