Chuck Hughes Optioneering: Market Update December 19, 2025
Market Moves: S&P 500 Choppiness, Tech Slump, and Biotech Breakout
The S&P 500 has been pretty choppy lately—lots of ups and downs, but no major spikes in volatility. Last week, the index hit a new all-time high, then sold off, and that selling continued into this week, even though the jobs report was decent. Things finally turned around after a delayed inflation report gave the market a boost, helping the S&P rally and put in a higher low. Overall, the market’s been stuck in a range since October, but it’s now trading above its 50-day moving average, which is a good sign.
Under the surface, there’s actually some positive stuff happening. While big tech and semiconductor stocks (the ones that led the market all year) have dropped 15–20% from their highs, other sectors are picking up the slack. The equally weighted S&P 500 is just a bit off its highs, and about 64% of S&P 500 stocks are in a confirmed long-term uptrend—much better than last month. This rotation is healthy and shows the bull market is still alive.
A standout sector is biotech, especially the XBI ETF. Investors are moving out of expensive AI stocks and into biotech for growth at a better price. The XBI has been on a strong bullish run, hitting new 52-week highs. We recently sent out a trade alert for XBI a few weeks ago, and so far, it’s up nearly 15% with more room to run.