A bounce is underway since the NASDAQ Biotech Index Fund (IBB) tapped its 200-week moving average last week amid rare and significant oversold conditions (read more from last week).
So, how long does it last?
Looking back at the first leg down of this mess between July and September, the bounce from $290 (which was also the 100-Week Moving Average) in late September was followed by a picture perfect touch of the 50% Fibonacci retracement level in December. This is somewhat typical of both rapid rallies and rapid corrections. That period of consolidation and drift higher lasted about 3 months, from October through December. The sector then began its next leg lower at the end of the year, which it appears MAY have stopped at the 200-week MA, discussed last week. 
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