Health Care Reaching Support
05/06/2010 9:38 am EST
The health care sector—and sector ETF XLV—has underperformed the S&P since the February lows as the daily RS chart shows a violation of its WMA on February 11. The daily chart shows that there is good support and the 200-day MA in the 350 area. This is generally considered a defensive sector that could benefit if the overall market continues to correct, but I would expect the RS analysis to identify this turn. For more on sector analysis, click here to sign up for this week’s Trading Lessons e-letter.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.