Notice how persistent the colors are on either end of the table?
What this suggests is that the same industry groups that have been outperforming the market have continued to show strength, while there is no signs of this weakness changing on the other end.
Something of note is how Medical Devices $IHI has shown strength while Healthcare $XLV has been the weakest sector over the last six months.
Interestingly, the ratio of Medical Devices $IHI relative to the broad Healthcare sector $XLV is at a key level of resistance. Furthermore, the sector has rebounded and despite its weakness over the last six months has been the strongest sector YTD.
With this ratio hitting resistance, we could see some rotation within the underlying healthcare industry groups which could be positive for the sector.
Speaking of rotation, we might be witnessing the same thing play out in the retail sector, with the market all but writing off Peloton—only for it to explode 20% higher in a stunning reversal.
And even more, Jeff Macke called it. He’s been all over the retail space for years, and he’s got a killer breakdown of what’s really happening with PTON. Read it here before the shorts figure it out.
