On February 23 we put out the post “Is Healthcare about to get Sick?”:
In the couple of weeks since that post, XLV (Healthcare Sector ETF) has dropped ~4.5% with many individual components falling dramatically further.
While Healthcare may have some room to the downside from here, I would not be surprised to see it get some buying interest in the next couple of weeks as we get closer to earnings. The Bullish Percent we noted on Feb 23 was at 70.97 is now down to 58.06. As we said in our post on the 23rd, a retrace back below 50 would be normal. This is inline with the pullback we expected off of the January/Feb rally. A little more pain – sure, but don’t get too piggy beyond a week or so…
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