XLV fell 3.9% last week, closing back below its 50-DMA ($133.86) and near YTD lows. Support is $127.35 to $130. Its RS line is again
near all-time lows, warranting an underweight sector positioning.
Author: Raj Gupta
O’Neil Market View
U.S. Market
The U.S. market has shifted to an Uptrend Under Pressure. Indices staged a sharp downside reversal near all-time highs, declining over 2% and closing below the 21-DMA (6,284/20,764) for the first time since the April 22 follow-through day. The next level of support on the S&P 500 and Nasdaq is at the rising 50 DMA (6,130/20,290), which is poised to coincide with the top of the prior base consolidation. The distribution day count stands at four and two, respectively.
O’Neil Health Care Weekly
XLV rallied 3.5% last week, closing back above its 50-DMA ($133.78), but still below resistance at its falling 100-DMA ($137.26) and
200-DMA ($141.34). Though its RS line did rally slightly from multi-year lows last week, it remains in a downtrend and still warrants
an underweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 1.5% and 1.0% for the week, the fourth all-time high weekly close in five weeks. Support remains the rising 10-DMA (6,310/20,889), followed by 21-DMA (6,254/20,610). The distribution day count stands at two on each index, after one expired on each index Friday after the market close.
O’Neil Health Care Weekly
XLV fell 2.48%, closing back below its 50-DMA ($133.71). The next level of support is $127.35 to $130. The RS line remains near alltime lows, still warranting an underweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq remain at or near all-time highs with support at their rising 10-DMA (6,257/20,651), followed by their 21-DMA (6,184/20,357). The distribution day count stands at four and three, respectively, with one day expiring on each index next week.
O’Neil Health Care Weekly
XLV traded relatively flat last week, testing near-term support at its 50-DMA ($134.15) and still under its falling 100-DMA ($138.61) and
200-DMA ($142.30). The RS line remains near all-time lows, still warranting an underweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were down 0.3% and 0.1%, respectively, this week, each closing very slightly below all-time highs. First level of support is at the rising 10-DMA (6,234/20,450), followed by the 21-DMA (6,145/20,101). The distribution day count stands at four and three, respectively, after one day expired on each index after Friday’s close.
O’Neil Health Care Weekly
XLV gained 1.2% last week, regaining 50-DMA ($134.40) support, but still below trading 100-DMA ($139.14) and 200-DMA ($142.81)
resistance. The RS line remains near all-time lows, still warranting an underweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq jumped to new all-time highs as breadth of leadership is expanding across multiple sectors. The first level of support is at the rising 10-DMA (6,160/20,161), followed by the 21-DMA (6,078/19,831). The distribution day stands at four and three, respectively.