Markets began the week Monday with a slight reversal for the Nasdaq which rose .1% after being higher by as much as .45% intraday. It continues to have issues with the 6450 number and one would be wise before adding to any names in the sector until that level is decisively taken out. The S&P 500 ended up near the UNCH line also off intraday highs and bulls want to see better liftoff following the recent break above the 2490 cup base trigger. The round 2500 number not surprisingly is weighing on the index. The clear winner on the day was the Russell 2000 which rose nearly .65% and it is sniffing out the cup base trigger right at the 1450 number, which remember is V shaped and that makes it somewhat failure prone.
Looking at individual sectors today it was the finnies swimming briskly upstream and perhaps the conventional wisdom that interest rates are done int he near term is incorrect. The XLF rose 1.2%, doubling its two nearest competitors with the industrials and materials higher by .6%. This type of action along with the Russell 2000 suggests a risk on appetite is falling over investors at the moment. Utilities were the clear laggard Monday with the XLU surrendering 1%.
Pouring over a multitude of charts over the weekend I came away that healthcare could remain a prominent bullish theme going forward. First and foremost the PRICE action has been seductive and secondary factors like M&A activity within has to be applauded. Just a few names to mention would be the obvious with KITE, but others perhaps less widely know were swallowed as well. They include PRXL, PMC, SCLN, NXTM and VWR. Another positive that some may consider a contrarian negative is that 5 of the top 10 performing IPOs this year so far emanate from the healthcare group, being AKCA, URGN, BHVN, ANAB and BYSI (they were all higher by at LEAST 90% after Fridays close). Below is one of our favorites, RGEN, and how it appeared in our Thursday 8/31 Game Plan. It is now comfortably above a double bottom trigger of 43.44 and one can now add to above a cup base trigger of 46.91. We have written about this name in the past.