What if AI's most consequential application isn't writing code? What if it’s compressing drug discovery from a decade to two or three years?
Biotechs at the leading edge are already pricing in that future. Today's standout is the cleanest equal-weight play on the move:
The S&P Biotech ETF $XBI is currently exhibiting a Squeeze Score of 95.5 and a Long-Term Squeeze Score of 94.4.
Here’s what the chart looks like:
Biotech has been one of the strongest areas of the market for more than a year. Within Healthcare, it's the clear leader.
After doubling off the April lows, XBI has spent the past several months consolidating those gains in a tight continuation pattern.
Volatility on the Strazza Indicator has compressed into one of its tightest ranges of the cycle, signaling a significant momentum reset as price approaches the apex of the structure.
The longer-term trend remains bullish. A breakout above the upper bounds of this coil would signal the next leg higher is underway.
