After the close 6/22...BRexit Curbs Enthusiasm

The rally out of the box lost ground about 11:30 am EDT as reality took over as the latest BRexit pools should about 43-44 for Remain, but another poll shows +6 for REMAIN. With vacillating margin of error results on polls it should come down to how many voters turn out.

The IBB peaked at $260 and dropped back to settle at $256.56 up only 0.56%. This mid-day sell-off feels like a short covering rally rather than conviction for buyers. So we need to show that the intermediate May 12 bottom has held and have biotech ETFs positive for the week amidst the Macro turmoil. The healthcare sector outperformed today up 0.43%. Bellwether Celgene (CELG) held onto its gains up 2.45%. If CELG cannot hold in here it is not positive for biotech because it is widely held. Many other large and mid-caps did well today but Alexion (ALXN) was down 2.2% to $121.

Biotech Reversal Halts Downward Slide

Buyers rushed into biotech stocks this morning to halt a slow declining pattern over the past two weeks.The buying catalyst could be impending news from IPAB (Medicare Independent Payment Advisory Board) regarding Medicare payments and drug prices. The latest news from above Bloomberg link says IPAB will not be triggered until 2017.

Shorts are undoubtedly covering. The IBB is up 2.3% and the XBI is up 1.9% to $54.25. Celgene is up 3%. Nasdaq is up 0.5% as of 11 am EDT trading.

Update to follow.