Healthcare Temptation:
This very diverse group recorded some nice reversals Thursday and in the process, some bullish candlesticks were registered. The illiquid IHF saw a bullish hammer candle which nearly filled in a gap from the 7/14 session as a possible double bottom base sets up. The XBI CLOSED with a spinning top candle just one day after breaking underneath a bearish head and shoulders formation. These candles are adept at signaling changes in the prevailing trend. The IHI which has been one of the softer spaces within healthcare continued its losing streak to 6 sessions Thursday. Below is the chart of the XLV and it was the only one of the funds previously mentioned that rose today to the tune of .5%. The top 3 holdings in UNH JNJ and PFE all rose between 1-2% Thursday, and others like LLY and MRK rose 5 and 3.5% with the former making a stand at the round 300 number for the third time in 7 weeks. Thursday it was the best major S&P sector and the only one to advance. This group could be ready to run.