Round Number Roadblock:

As the subgroups within the diverse healthcare space try and wean off the overall weakness, perhaps they are sending a decent signal. The inability of the bears for example being unable to push the IHI lower as the ETF has traded sideways in a 10-handle range for the last 14 months is a good sign. Others like the IHF feel heavy with a 2-year WEEKLY round top that saw a peak just below the very round 300 number last April. The illiquid PPH is hovering around a double bottom pivot of 79.11 as it will try and tackle the round 80 number potentially in the near future. Below is the chart of XBI which continues to have issues with a familiar foe in the very round 90 number which it seems to back away from almost automatically. The fund failed to break meaningfully above a 3-week tight pattern with the 3 weeks ending between 5/5-19 all CLOSING within just 6 pennies of each other. I think many investors have given up and accepted that it will be rejected each time it comes into contact with it. For that reason, it could record a powerful breakout if, and that is a big IF, it can break above 90 decisively. That would put a WEEKLY double-bottom pivot of 92.70 in play too.

This article requires a Chartsmarter membership. Please click here to join.