Do Or Die:
The XBI could be considered an “equal weight” biotech ETF as the largest component comes in at 1.5% of the fund. I was frankly surprised to see NVAX as the 5th largest weighting and if this breaks back below its downward sloping 50 day SMA here after a rejection near the very round 10 number then this could be a zero (remember a few weeks back there were concerns if this could stay in operation). The chart below of the XBI shows some nascent strength on its daily chart (on its WEEKLY chart it has not been following through to the downside after the drawdown from February 2021-May 2022) with a couple 4% daily gainers on 4/13 and 4/17 on robust volume. The obvious roadblock here is the 200-day SMA, but if it can climb above it could mean some “risk on” develops against the older more mature IBB names. One play in the IBB that looks attractive would be if REGN would retest a double bottom breakout pivot of 785.38 from the 3/23 session, which would also be the first touch of the rising 50-day SMA since the breakout, often an optimal entry point.