Key Takeaways

  • SPX and QQQ look to be bottoming near initial support after recent weakness.
  • Healthcare looks to be breaking back out vs SPX in relative terms.
  • Pharmaceutical stocks, Managed Care and Healthcare Distributors look most attractive.
The video in this report is only accessible to members
The video in this report is only accessible to members

The near-term market pullback should be close to completion in the short run and can allow for rallies into April expiration. While the larger trend remains volatile and negative and should pave the way for SPX to test and even break February lows near 4100 before 4800 is tested, that likely won’t happen right away, technically speaking.  As discussed yesterday, prices have neared initial technical support, while cycles show an upward bias in US Equities between 4/11 into 4/18 before turning lower.  Healthcare in particular, looks very attractive as a Sector overweight, and along with the commodity related names, should be overweighted for outperformance in the weeks ahead, along with Defensive areas like Utilities and Staples between now and the end of Q2.  Overall, from a short-term tactical standpoint, it looks right to position long for a bounce with confirmation appearing on daily closes over 4507.57 in SPX and QQQ-358.59.

The video in this report is only accessible to members
Healthcare breaking out vs SP...

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