The downtrend in the biotech sector that began on February 26 ain't done yet. On a technical basis, (IBB +0.1%) has been trying to hold on to its wobbly base since its snap back move on April 15. Volume has dried up as the index struggles to stay above the key support level of the 200-day MA. This is not encouraging action for longs.
The relative strength line has dropped from a best-possible rating of 99 down to 68 with no upturn in sight.
Biotech investors should keep their powder dry until the money flow turns decidedly positive. Based on the chart, there is no indication that this is happening yet.