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Actionable news in BIB: ProShares Ultra Nasdaq Biotechnology,

Biotech was 'late to the party, but partied hard' — and beware the hangover

The IBB, an ETF that tracks biotech stocks, has fallen nearly 11 percent this month — and could be headed lower.

"To us, this is really a story about market sentiment," Max Wolff, market strategist at 55 Capital, said Friday on CNBC's "Trading Nation."

Biotech is a high-risk space that shot up quickly, Wolff said. The iShares Nasdaq Biotechnology ETF, the IBB, hit an all-time high last summer and has since tumbled as drug manufacturers' pricing has come under scrutiny. The presidential election has weighed on the space, too; biotech rallies have suffered after remarks made by Democratic candidate Hillary Clinton addressing drug pricing.

Wolff said that investors have moved out of the space "aggressively" as they've...