HEALTH CARE SPDR ACHIEVES BULLISH BREAKOUT -- BIOTECH ISHARES REACH HIGHEST LEVEL IN SIX MONTHS -- STOCKS END WEEK ON STRONG NOTE WITH ALL ELEVEN SECTORS GAINING GROUND
HEALTHCARE SPDR ACHIEVES BULLISH BREAKOUT... On a day when stocks are rising, and all eleven market sectors are in the black, healthcare is the standout performer. Chart 1 shows the Health Care SPDR (XLV) rising to the highest level since the middle of March. The bottom box shows the XLV/SPX ratio rising to the highest level since late April. The XLV has been rising faster than the SPX since the start of May. The XLV now appears to be on the verge of exceeding its March intra-day high at 86.23. Biotechs are the main driving force behind today's healthcare surge.
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Chart 1
BIOTECH ISHARES BREAKOUT AS WELL ... Chart 2 shows the Nasdaq Biotechnology iShares (IBB) surging to the highest level since January. The IBB is the largest and most liquid of the biotech ETFs. Its biggest holdings include leaders like Biogen (BIIB), Alexion (ALXN), Amgen (AMGN), Gilead (GILD), Illumina (ILMN), Regeneron (REGN), and Vertex (VRTX). Biogen's 19% gain is the biggest in the group. But all of the others named above are having a strong day as well. Stocks in general are ending the week on a strong note. We'll take a more in depth look over the weekend.
