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.
Author: Raj Gupta
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.
O’Neil Health Care Weekly
XLV gained 1.0% last week and is now trading at its 21-DMA ($133.93). Near-term resistance above is $137.33 followed by the falling
100-DMA ($139.61). The range of support remains $127.35 to $130. 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 is in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 3.4% and 4.3%, respectively, for the week. Both indices cleared and closed the week above prior all-time highs, for the first break to highs in four months. Support is at the rising 21-DMA (6,007/19,567), which indices are ~3-4% extended from. The distribution day count stands at four and three, respectively, with one expiring on the Nasdaq in the coming week.
O’Neil Health Care Weekly
XLV fell 2.6% last week closing back below its 21- and 50-DMA ($134.72), which will again act as near-term resistance. The next
range of support is $127.35 to $130. Its 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. Indices were relatively flat for the week, as the S&P 500 and Nasdaq are consolidating above 21-DMA (5,943, 19,290) support and remains only 3–4% off all-time highs. The distribution day count stands at five and three, respectively, with two days expiring on the S&P 500 next week.
O’Neil Health Care Weekly
XLV gained 1.3% last week, regaining its 50-DMA (~$135) which will now act as near-term support above the rising 21-DMA
($134.30). Its RS line has rallied off lows, however, it remains near all-time lows, still warranting an underweight sector positioning.
We will be looking for XLV to settle above its 50-DMA and for a further rise in its RS line before recommending an equal weight
positioning.
O’Neil Market View
U.S. Market
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq fell 0.4% and 0.6%, respectively, last week. Indices are 2–3% off their all-time high (6,147; 20,204), with primary support at rising 21-DMAs (5,921; 19,172). The distribution day count stands at five and three, respectively, after the S&P 500 added one on Friday.
This week, all sectors except Consumer Staple closed above their 50-DMA and all but Consumer Staple, Health Care, and Transportation above their 200-DMA.