Chart of the Day - Friday, June 6, 2025

June 6, 2025
Patrick Dunuwila

Chart of the Day


🏆  Today's Chart of the Day was shared by Jamie Saettele (@JamieSaettele). 
 

  • Biotech just notched its best week since last summer, with the equally-weighted SPDR Biotech ETF ($XBI) gaining +6.4%.
     
  • While $XBI remains in a -50% drawdown from its 2021 peak, Jamie points out that it successfully cleared resistance at $83 today, marking the intersection of a 7-month downtrend line and the year-to-date AVWAP.
     
  • Biotech could 'make Small Caps great again,' considering it’s the second-largest industry group in the Russell 2000, accounting for more than 20% of the index.
     

The Takeaway: Biotech just had its best week since last summer, with $XBI breaking through a combo of resistance at $83 today. Continued strength would be a bullish sign for the Russell 2000 and risk appetite in general.

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