Technical Strategy Video (Recorded Tuesday, October 19th):
- Outperformance in Biotech, Services, Medical Devices and Pharma bodes well for Healthcare to “kick into gear” after a difficult month of underperformance
- Automotive (Retail) and Trucking (Transports) are two key groups to favor which are entering bullish periods of positive 6M seasonality
- Copper’s spike to multi-week highs keeps this bullish for a continued rally
First, when looking at Equities, SPX upside follow-through has now come within 16 ticks of closing at new all-time highs. Momentum is stretched on an hourly basis and showing negative divergence. However, daily momentum is positive and not overbought. Overall, trends are bullish, and while minor pullbacks could happen, prices should not undercut 4430 (10/7 peak) before pushing back to highs
Healthcare showing real evidence of turning back higherTuesday showed S&P Sector SPDR Healthcare ETF (XLV) and the Invesco Equal-weighted Healthcare ETF (RYH) exceeding the downtrend from September along with making a minor breakout to new multi-week highs. This is a bullish technical developmentEven after Tuesday’s gains, Healthcare remains lowe...