XLV has also formed a , which it’s broken to the upside.
Health care is interesting because it lost more than 1 million workers amid the coronavirus lockdowns (according to Labor Department data). It’s not as bad as hotels or airlines, but it was clearly disrupted.
However unlike hotels and airlines, health care is a non-cyclical part of the economy that can still work during a recession. And recent numbers show it might be rebounding quickly. For example hospital operator HCA is up 35 percent in the last month, partially because admittances are rebounding. Equipment providers like Intuitive Surgical and Abiomed have also jumped as procedures resume.
Overall health-care isn’t the most exciting sector. But it is a big chunk of the economy. Like housing, it’s likely to recover much more quickly from the pandemic than other sectors. That may keep the buyers engaged, especially if XLV holds the recent low of $104.43.