Healthcare is the latest of the American Sectors to break out to new all-time highs. I think Financials are next, but for today's conversation, let's focus on the task at hand: Healthcare is a space we want to own.

First of all, here is that breakout. It rarely gets cleaner than this:

Click on Charts to Zoom In

Another 35% of upside in this sector would be consistent with historical moves in the past and would be perfectly normal, as far as I'm concerned.

The bigger question, really, is which industry group is going to be the main driver?

The obvious choice appears to be Medical Devices. When all these stocks and sectors were churning sideways since early 2018, the relative strength was already here. You can't deny that. Look at this beauty:

Did you notice that the U.S. Financials Sector Index is just 3.5% away from its infamous all-time highs in 2007 before the financial crisis?

That's right, $XLF is approaching this level once again, for the 3rd time in almost 13 years. Is this finally going to be it? Are we really going to start a new bull market in Financials?

I think yes and I'm going to tell you why.

First here is the chart I'm referring to and its 3rd attempt to get through this level:

This week I hosted a Live Special Conference Call for Premium Members of All Star Charts. Premium Members can access My Presentation here.

You can also watch this entire video for just $1 by clicking this link. In this short clip below, I show you 3 specific points throughout the presentation where

1) I discuss risk management techniques and how we will know soon if we're wrong on our thesis,

2) a specific ratio that is a coincident and, often times, a leading indicator for US Stocks, and

3) how we identify specific trade ideas using the top/down approach, with 2 ideas in particular that we want to take advantage of today.

If you have any questions, please feel free to reach out to me, even if it's just to say hi. Sign up here to watch the video in full

From the desk of Tom Bruni @BruniCharting

Thank you to everyone who responded to this week's mystery chart.

There were a lot of people on the right track in guessing what it was...but nobody got it exactly, which serves you right for guessing.

In any case, most of you are taking a neutral or bullish approach to the chart and agreed that a potential trend reversal is in the works.

Let's take a look.

In May we wrote a post for premium members titled "Technology Issues Continue", speaking about a failed breakout and general lack of trend in Indian Technology stocks.

Our conclusion then was to be avoiding the sector on the long side and that its weakness was a drag on the broader market given its 10% weighting in the Nifty 500.

Today, not much has changed, in fact, it's arguably getting worse.

Let's take a look.

From the desk of Tom Bruni @BruniCharting

If you look at a list of the best-performing stock markets in the world this year and over the last few, you'll see New Zealand towards the top of that list in both local currency and US Dollar terms.

With that said, today's Chart of The Week is focused on another New Zealand chart that's NOT equities.

Don't worry, we'll talk equities too for you non-currency traders.

What I always like to say is that Technical Analysis doesn't give us all the answers, but it certainly goes a long way in helping us ask the right questions. That's what this is all about.

Today I have 2 questions I'm asking:

The Nifty 50 and Nifty 500 are back at the top of their multi-year range right as we're starting to see signs of exhaustion in various global markets.

Failed breakouts and bearish momentum divergences help us to identify potential reversals in the market and we're seeing a few of them occur in India and elsewhere.

From the desk of Tom Bruni @BruniCharting

Over the weekend I was running our "Weekend Momentum Report" for Institutional Clients and the message was very similar to last week, so I thought it was worth sharing.

With a new month come fresh monthly candles.

While we were going to write a comprehensive post on the most important monthly charts from November, we realized there are only two that matter to India's stock market right now.

Let's take a look.

Are you guys noticing how the new 52-week high list keeps getting longer, and not shorter?

I can't emphasize enough how the lies about weak market breadth have been just that: Lies, or myths, or whatever words you need to use that won't offend people. I stopped caring about that sort of thing a long time ago and just tell it like it is (someone has to). I'm just not seeing the weak breadth scenario playing out like they keep telling me. It's actually been quite the opposite. We've been seeing expansion in participation for months. So this is really nothing new.

The Value Line Index has been a helpful barometer of US Stock Market strength in the past, and today is no different.