We’re very excited to present our Squeeze Engine, one of the main tools that powers the success of Breakout Multiplier.
Biotechs began reversing trend in a meaningful way last year and have remained a pocket of strength ever since. After the initial surge, they have spent the past three months consolidating and coiling, storing energy for the next move.
Here’s today’s standout:
The S&P Biotech ETF $XBI is currently exhibiting a Squeeze Score of 97.1 and an even tighter Long-Term Squeeze Score of 91.4.
Here's what the chart looks like:
Biotechs have been coiling in a tight, multi-month range within the context of a bearish-to-bullish structural trend reversal.
Volatility on the weekly Strazza Indicator continues to compress as price sits just beneath the 61.8 percent Fibonacci retracement. A breakout above 131 would signal the consolidation phase is complete and the next leg higher is underway.
Biotech remains a relatively illiquid corner of the market, so expressing the theme through the index, using $XBI, is often the cleaner and safer approach.
