HEALTH INSURERS AND DRUG DISTRIBUTORS PUT HEALTHCARE SPDR NEAR THREE-MONTH HIGH -- UNITEDHEALTH GROUP AND HUMANA CLEAR 200-DAY LINES -- AMERISOURCEBERGEN, CARDINAL HEALTH, AND MCKESSON ARE HAVING A VERY STRONG CHART WEEK
HEALTHCARE CONTINUES STRONG WEEK...Healthcare is the day's strongest sector for the second time this week. Chart 1 shows the Health Care SPDR (XLV) trading above a falling trendline drawn over its July/September highs; and putting the XLV close to the highest level in nearly four months. Health care insurers are having another strong day.
Charts 2 and 3 show UnitedHealth Group (UNH) and Humana (HUM) rising above their 200-day moving averages. Drug distributors are also rising for the second day in a row. Three of those drug companies agreed earlier in the week to pay $18 billion to settle legal suits accusing them of fueling the opioid crisis. And their stocks have had a very positive reaction.
Chart 4 shows AmerisourceBergen (ABC) rising to a three-month high. Chart 5 shows Cardinal Health (CAH) rising to the highest level since March. Chart 6 shows McKesson (MCK) nearing a 52-week high.
