Chart of the Day - Wednesday, August 4th, 2021

Today’s Chart of the Day was shared by Eric Conrads (@conradseric). It's a daily chart of the popular Biotech ETF, $IBB, over the past year. The top-weighted stocks in this ETF include $Amgen ($AMGN), Gilead ($GILD), Moderna ($MRNA), Illumina ($ILMN), and Vertex Pharmaceuticals ($VRTX). Two months ago, we highlighted several reasons that $IBB looked poised to move higher, and today, it's testing record highs for the first time since February. As you can see, it has formed a large base over the past six months, and you know what they say about big bases...."The bigger the base, the higher in space!" $IBB closed just a hair shy of an all-time high today, but if it does enter blue-sky territory in the near term, there will be virtually no overhead supply to prevent it from moving significantly higher.