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.
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 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.
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.