Biotech stocks are getting slaughtered again to start the week with the S&P 500 Biotech group now down 2.9% on the day, 14.4% from the last time it had an up day on 9/17, and 21% from its closing high in July. If the index closes around current levels, it will end what was the strongest and second longest bull market in the index’s history dating back to 1992 (using the standard 20% threshold for bull and bear markets). After a rally attempt off the August lows in early September, the Biotech group saw its momentum come to an abrupt halt right at the 50-day moving average, and ever since then it has been nothing but down. Where is stops, nobody knows.
While no one will be able to tell you when or at what levels the selling in biotech stocks will stop, it often helps to look back at prior sell-offs for a baseline estimate of what to expect in the current period. To that end, Bespoke Premium and Institutional clients just received a report highlighting prior bear markets in the S&P 500 Biotech group — focusing on how long they lasted and how far they fell. If you’re currently a client and have yet to see the report, you can click on this link to get it. If you are not yet a client and would like to see the report, sign up today for a free Bespoke trial. If you enter the coupon code “thinkbig”, you’ll save 10% for the life of your membership!