I should have clarified that XBI is recently coming off oversold readings. In fact, the two recent lows on the daily RSI form positive divergences against price.
If I had to pick going long or short XBI here for the next 3-6 months, I’d probably choose short. However, I don’t care to short a sector that is sitting above a primary uptrend line (weekly), coming off oversold readings (daily) that have historically been followed by rallies of over 50% (see previous 2 oversold readings on that chart from early & late 2016) & with the PPO trend indicator still bullish (although very close to crossing bearish) for the last 12 months. All that can change with just a little more downside in XBI but until then, I’m fine standing aside to let the bulls & bears duke it out here.