XLV - Healthcare Sector Outlook

AMEX:XLV   SPDR Select Sector Fund - Health Care
Healthcare - XLV

Health Care: Companies involved in healthcare-related services, including pharmaceuticals, biotechnology, medical devices, hospitals, and health insurance.

Economic Cycle Sensitivity: Health care companies tend to be less sensitive to economic cycles. The demand for health care products and services remains relatively stable, driven by factors such as population demographics, technological advancements, and healthcare needs. However, during economic downturns, there may be some impact on discretionary healthcare spending.

Top 20 Health Care Companies:
Johnson & Johnson (JNJ)
Pfizer Inc. (PFE)
Merck & Co., Inc. (MRK)
Novartis AG (NVS)
AbbVie Inc. (ABBV)
Amgen Inc. (AMGN)
Bristol-Myers Squibb Company (BMY)
Gilead Sciences, Inc. (GILD)
Eli Lilly and Company (LLY)
AstraZeneca PLC (AZN)
GlaxoSmithKline plc (GSK)
Medtronic plc (MDT)
Abbott Laboratories (ABT)
Sanofi (SNY)
Novo Nordisk A/S (NVO)
Boston Scientific Corporation (BSX)
Thermo Fisher Scientific Inc. (TMO)
Biogen Inc. (BIIB)
Vertex Pharmaceuticals Incorporated (VRTX)
Cardinal Health, Inc. (CAH)

Technical Overview:

The healthcare sector has been trading in larger range dating back to April 2021 between the prices of 118.75 - 143.42.

On the Weekly and Monthly charts XLV has broken out of a large pennant with lots of volume. This could signal a big move in stocks heavily weighted in the healthcare sector.

At the end of the week of July 17th, XLV closed above structure closing at 136.24.

Although we still have one week left in this month, XLV has the potential to make a move up to the high of the monthly range to 143.42. This move could take a few months 2-3 or more.

With the previous higher low on the weekly created by such a large candle, there could be a pull next week or two before continuing upward.

Monitor tickers within this sector as the CLV makes it move. This chart should help provide some day trading and swing opportunities over the next few weeks or so.

If swinging anything, watch for any major news or earnings along the way.

Last thing, Although the healthcare sector isn't necessarily affected by the economic cycle, this big move/breakout could be an indicator of money rotating from tech, etc ...
XLV not CLV ... sorry

Dennis Butler Jr.

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