Healthcare Gives It Up:

This week finally witnessed healthcare give up the YTD lead to technology. Now of course the race is far from over with 7 months to go, but potential weakening were expected given the V shaped recovery this group has made off the 3/23 lows. The XLV WEEKLY chart shows two very tight weekly CLOSES the last 2 weeks, after the 4 week winning streak between weeks ending 3/27-4/17 rose just more than 25%. That is positive action after the nice run, and the sideways trade should give the ETF time to catch its breath at the very round par figure. Looking at top components JNJ sits just 4% off most recent 52 week highs, UNH is battling with the very round 300 number which has pushed it back since late last December, and PFE recently recaptured its 200 day SMA after spending 3 months below it. Below shows the YTD chart of all 11 of the major S&P sectors, and there should be no embarrassment playing second fiddle to perennial favorite technology. After all there could be another leap frog depending on the reports with MSFT FB AMZN and AAPL all reporting the next couple days.

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