UPDATE: Biotech Index $BTK Rejected @ 78.6% Fib Retracement; Last Hurrah or Bubble Reinflating?

Last we posted on Biotechs (June 10), the Biotech Index ($BTK) as well as ETF’s $IBB and $XBI had rallied right to their respective 61.8% Fibonacci Retracement of the February to April declines. We surmised that might be it for the Biotech bounce. Alas, the biotechs broke through the 61.8 level several days ago and we mentioned the 78.6% retracement level was the next stop. $BTK reached the 78.6% level yesterday, to the dollar, before reversing.

If the biotech bears are to be correct that the biotech bubble has popped, this level will likely need to be where the bounce stops. Should it break through, the bubble pop scenario will have to be reconsidered.