Nasdaq Biotech Index Re-Plunges To 10-Week Lows

Tyler Durden's picture

UPDATE: Sure enough the 100DMA was met with buying... for now...

 

The Nasdaq Biotech index is down 4% from earlier opening highs and is once again testing the 100-day-moving-average that provided some impetus for a modest bounce yesterday. This is a 10-week low level (-14% from Feb highs) and has retraced over 60% of the gains since the Fed announced the taper in December. Volume has been very heavy.

 

We suspect we will bounce off the 100DMA once again...

 

but any 3rd break may be the tell that all is not well (as well as the volume below...)

 

As a gentle reminder this all started when Waxman questioned the bubblicious pricing that bubblicious firms like Gilead are pricing for their new drugs...

Letter to Gilead by zerohedge