XLV closed flat on the week, after pulling back and rallying from 50-DMA ($148.74) support. The next level of resistance is $158.95
which is just below the all-time intraday high of $159.64. Its RS line is attempting to make a higher low, still warranting an equal
weight sector positioning.
Author: Raj Gupta
Market View
The U.S. market is in a Rally Attempt. Indices pulled back on Friday after consolidating near highs. The next level of support is the 21-DMA (6,809) on the S&P 500 and the 50-DMA (23,114) on the Nasdaq. The market status remains in a Rally Attempt as long as indices trade above the November 21 low (6,521, 21,898).
O’Neil Health Care Weekly
After rallying for four straight weeks into new high resistance ($159.64), XLV pulled back sharply last week, declining 2.7% into 21-
DMA ($152.75) support. Should this level break, the next level is ~$150. Its RS line is now pulling back from highs, warranting an
equal-weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market is in a Rally Attempt. Indices have regained all moving averages and are consolidating above their 10- and 21-DMA (6,778/23,153). The market status can be upgraded to a Confirmed Uptrend should a follow through day (+1.7% on higher d/d volume) occur or if either index closes at a new high.
O’Neil Health Care Weekly
XLV rallied for a fourth straight week, gaining 2% and now testing all-time high resistance at $159.64. Since gapping higher in early
October, the index has been trending constructively off the 10-DMA ($154.88) and 21-DMA ($151.81). Its RS line continues to rally
from lows, warranting an equal – to – overweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market was moved to a Rally Attempt from Downtrend. The S&P 500 and the Nasdaq gained 3.7% and 4.9%, respectively, for the week. Indices are up five days in a row after finding support at their 100-DMAs and have now retaken and held above their 21-DMA (6,735/22,965) and 50-DMA (6,725/22,950). The window for a follow-through day (+1.7% on higher d/d volume) remains open, or the market could be shifted to an Uptrend if either index closes at a new high.
O’Neil Health Care Weekly
XLV rallied 1.8% last week, outperforming all sectors and clearing resistance at $155.02. The next level is $157.59 before the all-time
high of $159.64. Since gapping higher in early October, the index has been trending constructively off the 10-DMA ($151.51) and 21-
DMA ($149.12). Its RS line continues to rally sharply from lows, warranting an equal – to – overweight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market has been downgraded to Downtrend from Uptrend Under Pressure. This week, the S&P 500 and the Nasdaq declined 1.9% and 2.7% respectively, closing below their 50-DMA (6,711/22,881) for the first time in seven months. Support is now the 100-DMA for each (6,548/22,057). A follow-through day (>=+1.7% on higher d/d volume on either index or both) can occur on Wednesday at the earliest if Friday’s intraday lows (6,522/21,898) are not undercut.
O’Neil Health Care Weekly
XLV gained 3.9% last week, rallying strongly from 21-DMA ($146.98) support and above resistance at $150.32. The next levels are
$155.02, $157.59 and new highs at $159.64. Its RS line continues to rally sharply from lows, warranting an equal-weight sector
positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were very volatile due to a sell-off midweek followed by an upside reversal on Friday. Indices are facing resistance at the 21-DMA (6,772; 23,191) with support at the 50-DMA (6,704; 22,835). The distribution day count stands at two and six, respectively, with one day expiring on Monday at the close on the Nasdaq.
