Stocks' September shenanigans continued last week as the S&P 500 lost more than one percent and although the Dow Jones Industrial Average notched a triple-digit gain last Friday, a problem is surfacing: Increasingly bearish action in the biotechnology space.
It is not a stretch to say that in the week ahead, this is an issue that traders of and investors in exchange traded funds will be heavily focusing on. That much is confirmed when noting the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB), the largest biotech ETF, slumped 13 percent last week and will enter Monday at its lowest levels in a month. With last week's tumble, IBB now resides nearly 11 percent below its 200-day moving average.
As an equal-weight ETF, the SPDR S&P Biotech ETF (NYSE: XBI) has heavier exposure to smaller biotechs than does the rival IBB. So it is not surprising that XBI was worse for the wear last week, sliding 15 percent.
Alas, readers of ...
/www.benzinga.com/general/biotech/15/09/5867164/etf-outlook-more-biotech-blunders-or-a-biotech-bounce alt=ETF Outlook: More Biotech Blunders Or A Biotech Bounce?>Full story available on Benzinga.com
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