Healthy Bounce
Yesterday I showed you a pocket of relative strength in the Oil Service
Index (OIX). The same
pattern can be found elsewhere in the market.
While the S&P 500 has retraced half of its gains, the S&P Healthcare
Index ($HCX) has pulled
back to its .618 retracement level and rallied off an 18-month trend line. In
this context, the index
is showing greater relative strength than the S&P 500.
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Will the bounce off this confluence of indicators hold? Remains to be seen, but
interestingly this sector
was among the strongest in the market today–up over 17 points–while the Dow and
Nasdaq both
dropped.
Eddie