The ETF that holds Biogen, Regeneron, Amgen, Gilead as four of the top 10 in its basket sits near the low price from two weeks ago ($109.70).

I designed my "Economic Modern Family" with the notion of economic cyclicals and non-cyclicals. In other words, the Family serves to measure the breadth of the economy by looking at supply, demand, retail, technology, both as the measures of consumer sentiment, regional banking and biotechnology. (My "Economic Modern Family is one index and five sectors that "define" the U.S. economy. Click here to learn more.)

Biotechnology is both a cyclical and non-cyclical sector.

In good economic times, pharma companies hire more, allocate more money to research and development plus attract a lot of speculators. In poorer economic times, pharma companies tend to do better because folks need medication regardless.

With that said, healthcare costs in general also will impact the performance of iShares Nasdaq Biotechnology ETF (IBB). IBB tracks the performance of a market-cap-weighted index of biotechnology and pharmaceutical companies listed on the Nasdaq.

In 2009, IBB was the first of the Economic Modern Family to bottom in price and improve in phase.

Now that the market has corrected about 20%, IBB is a sector to watch.

On the weekly chart, today’s inverted hammer doji (definition to follow) touched down on the 50-week moving average.

An inverted hammer doji is created when the open, low and close are all around the same price.

Often, this candlestick pattern signals the end of the down move, or that a reversal is possible.

What troubles me the most right now, is how many people continue to think that this correction has given the market fair value.

What’s fair value?

Should the oil and energy market continue to plummet, I fear we have yet to see “fair value.”

However, as unlikely as it seemed that volatility after it made an inverted doji hammer back on February 5 would climb, I will not overrule that IBB’s similar formation does not mean that this too can climb.

One fundamental aspect to IBB to consider is its role in finding a vaccine for the coronavirus.

At least for now we have a clear level to watch: $109.70.

Michele ‘Mish’ Schneider serves as Director of Trading Education at MarketGauge.com. For 20 years, MarketGauge.com has provided financial information and education to thousands. MarketWatch named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish won the Top Stock Pick of the year for RealVision. Follow her on Twitter at Michele Schneider @marketminute.