U.S. Biotechs are in a trough

Another U.S. equity sector which is paying a rare visit to the ‘Oversold’ extremes region are the U.S. Biotechnology stocks.

The Nasdaq Biotechnology Index has simultaneously registered a trifecta of a weekly oversold, a mean reversion to its 200 week moving average and a 2.5 standard deviation move below its rolling week mean.

This current period is only the 5th time this has occurred in the past 25 years.

This index has declined 33% from its September 2021 peak.

May 20, 2022

by Rob Zdravevski

rob@karriasset.com.au