This is scary stuff. If someone held a gun to my head to make a decision today, I guess I'd buy it before I'd sell it. But let's just leave it alone.
If it breaks below $67.70, the next support is $58, but that's a big "If."
Update 1
[Aug 17 at 2316hrs]:
Eric at Buy the Top is giving this index an 80-95% chance of breaking down in the next three days due to its overbought condition. I view him as a savant of sorts with a superbly developed right brain, which makes him uniquely qualified to see the spatial relationships necessary for technical analysis. My intellect can detect the overbought condition, but my brain cannot process such a high likelihood of XBI "breaking down to $60-62 over the next month." We'll see.
Update 2
[Aug 19 at 0400hrs]:
XBI closed at $67.37, which is indeed below support of $67.70. Eric's thesis looks good. The entire market closed down today, but the losses in XBI were greater than the market indices. All broad averages tested support levels (again) and while it may not be time to panic, this counter-trend rally is getting long in the tooth. Oil dropped after hours which may perk up the stock market today. Also the low volume trading yesterday tends to mitigate the worry we are learning to embrace. Looking for exits overall, and if XBI rallies back up to support (now resistance), maybe I'll open a short.
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