XLV gained 1.3% last week, holding 21-DMA ($144.35) support. Near-term resistance is at ~$148, followed by $150.32. With the index
back above key moving averages, and the RS line lifting from lows, we recommend an equal-weight sector positioning.
Author: Raj Gupta
O’Neil Market View
U.S. Market
The U.S. market has been shifted to an Uptrend Under Pressure. The S&P 500 and the Nasdaq declined 1.6% and 3.0%, respectively, for the week, breaching their 21-DMA. They each bounced strongly from their 50-DMA on Friday, which is now key support (6,670/22,665). The distribution day count stands at three and five, respectively. One distribution day on both indices is set to expire over the coming week.
O’Neil Health Care Weekly
XLV fell 1.2% last week and is now testing 21-DMA ($143.63) support before the rising 50-DMA ($140.39). Near-term resistance is at
~$148, followed by $150.32. With the index back above key moving averages, and the RS line lifting from lows, we recommend an
equal-weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and the Nasdaq gapped up ~1% and 2.2% respectively, and continue to consolidate above 10-DMA support (6,836/23,420), followed by the 21-DMA (6,752/23,109). The distribution day count stands at three and five, respectively.
Over the last five sessions, Technology (+2.3%) outperformed, followed by Retail and Transportation jumping +1%. Multiple sectors declined led lower by Consumer Staple (-3.7%) and Utility (-2.5%). Basic Material and Capital Equipment fell 1%.
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O’Neil Health Care Weekly
XLV gained 1.9% last week and is now building the right side of a long consolidation base with near-term resistance at ~$148,
followed by $150.32. With the index back above key moving averages, and the RS line lifting from lows, we recommend an equal
weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market was Shifted Back to a Confirmed Uptrend from an Uptrend Under Pressure. The S&P 500 and the Nasdaq gained 1.9% and 2.3%, respectively, and closed at new all-time highs. Indices have rebounded well from support near their 50-DMA and quickly retook and held above their 21-DMA (6,685/22,721), which will act as primary support once again. The distribution day count stands at three and six, respectively, with two days set to expire on the Nasdaq next week.
O’Neil Health Care Weekly
Sector Thoughts
XLV traded relatively flat last week, holding near-term support along its rising 21-DMA ($141.28). The next level of resistance is ~$148, followed by $150.32. With the index now back above key moving averages, and the RS line now lifting from lows, we recommend an equal-weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq are consolidating along their 21-DMA (6,650, 22,566 ) in a choppy fashion but remain above support at their respective 50-DMA (6,564, 22,110). The distribution day count stands at two and six, respectively, with one distribution day set to expire on the Nasdaq next week.
O’Neil Health Care Weekly
XLV declined 1.9% last week, pulling back after strong gains the week prior. Look for support at the rising 21-DMA ($140.50). The next
level of resistance is ~$148 followed by $150.32. With the index now back above key moving averages, and the RS line now lifting
from lows, we recommend an equal-weight sector positioning.
