After a big surge in late November, the Healthcare SPDR (XLV) pulled back with the rest of the market and formed a falling flag the last few weeks. This is a bullish continuation pattern and a break above 34 would reverse the three week slide. Notice that XLV continues to be one of strongest sectors as the Price Relative broke out this week.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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