Healthcare Breaking Down; Esp. Medical Devices

The Healthcare sector, under pains of congressional follies in trying to hammer out anything in revision to Obamacare, is not responding well.

Since our last look, XLV has maintained its state below the trend line as it looks to test the SMA 50, IHI has broken through the SMA 50, lateral support and the trend channel and IBB continues to drop toward the SMA 50 and potentially, lateral support.

We have been bullish on Medical Devices since early last year but now, it appears time for a much needed rest. The sector is turning bearish (I took a small loss on CRY and the remainder of profit on MZOR) and other areas of the stock market, save for Trump’s pump of Dow 22,000 (maybe we’ll post on that later) and Apple, appear to be in a foul mood.

xlv, ihi, ibb

For reference, here is the daily ‘vs. SPY’ chart of Healthcare and other sectors. Healthcare’s ratio is not broken, but it’s consolidated about as far as it should without breaking.

sectors vs. spy

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