Trend Signal Now: Biotech Breakout

Thursday, February 26, 2026

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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.

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Steve Strazza | Chief Market Strategist, All Star Charts

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