Biotech (IBB) Breakout

Despite the market turning lower today with the S&P 500 down over 1% and the Nasdaq 100 down closer to 3% thanks to weakness in AI names, there are plenty of pockets of green.  In fact, S&P 500 breadth is positive on the day, and one of the top performing sectors with a 1%+ gain is Health Care.  A part of that is a breakout in Biotech stocks.

Using the iShares Biotech ETF (IBB) as a proxy for the space, as shown below, the group repeatedly ran into resistance in the high $170 range from January through February of this year.  It then fluctuated around its 50-DMA, more recently finding support at its still upward trending 200-DMA before breaking out to the upside with fresh 52-week highs today.

Perhaps more importantly, today’s breakout for IBB doesn’t only mark a breakout relative to the past several months’ range, but it also just took out all-time highs last made in late 2021.

Now that IBB has finally broken through the clouds and cleared turbulence, will it now be clear skies ahead for IBB?

Want more from Bespoke?  You can start by joining our Think BIG mailing list, where you’ll receive an interesting market stat in your inbox a few times per week.  All we need is your email address.  Join now by clicking here or on the image below.