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Elliott Wave Financial Price Forecasting

Biotechnology (NBI) Fades After Trump-Jump

by WaveTrack International| November 23, 2016 | No Comments

NASDAQ Biotechnology Index - 30 mins.

NASDAQ Biotechnology Index – 30 mins.

NBI Fades After Trump-Jump | Biotechnology Index (NBI)

The Biotechnology Index (NBI) jumped higher following the Trump election win – this was no great surprise from an Elliott Wave perspective because prior to the voting, the NBI had already begun a counter-trend rally in response to the completion of a preceding five wave impulse decline that began from 3154.36. The only deviation from original forecasts higher towards 61.8% resistance at 2923.00+/- was the depth of the rally. But given the market’s unexpected response, it’s not unusual to see targets being extended in a moment of emotive short-covering.

The index has since traded up to 3075.45 – that’s almost a fib. 85.4% retracement of the 1st wave decline, about maximum for a deep 2nd wave retracement. As other major indices stretch to new higher-highs, the NBI is already waning, gradually working its way lower as if to begin its 3rd wave decline. Basis the preceding five wave pattern unfolding within the decline from September’s high of 3154.36 into the early-November low at 2582.20, it should be impossible for the index to trade any higher, and definitely not break above 3154.36. Could it be that this index is providing a pre-cursor look at an imminent downtrend getting underway for the broader market?

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