HEALTH CARE SPDR NEARS RECORD HIGH -- XLV HAS GONE FROM MARKET LAGGARD TO LEADER IN LAST TWO MONTHS -- ALL GROUPS ARE PARTICIPATING -- STOCK LEADERS INCLUDE HCA HEALTHCARE, INCYTE, BECKTON DICKINSON, AND MERCK

HEALTH CARE SPDR NEARS RECORD HIGH...In a remarkable turnaround, the healthcare sector has gone from one of the year's worst performers to one of the strongest over the last couple of months.  Chart 1 shows the Health Care SPDR (XLV) trading above its early July intra-day peak at 94.03 to put it in striking distance of its late 2018 peaks.  A close above those highs would put the XLV at a new record high.  Its relative strength ratio in the upper box has broken a yearlong downtrend line and also appears to be turning up.  Healthcare has been the year's second worst performer.  Only energy has been weaker.   But it has become the strongest sector over the past month and the third strongest over the past three months.   All of its individual groups are participating in today's rally. The four charts below show some of the day's biggest gainers from each group.

HEALTHCARE LEADERS...Chart 2 shows HCA Healthcare (HCA) surging nearly 7% today to lead health insurers higher.   The stock has cleared its moving average lines to reach a three-month high.  Chart 3 shows biotech leader Incyte Corp. (INCY) climbing over its 200-day average and its September high to reach a two-month high.  Both stocks are also seeing rising volume along with price gains.  Chart 4 shows medical supplier Beckton Dickinson (BDX) rising decisively over its blue 50-day average after just bouncing off its 200-day line over the past week.   Chart 5 shows pharma leader Merck (MRK) doing the same but in a stronger position.  Merck has also risen above a falling trendline drawn over its recent highs.   The broadness of today's XLV advance is pretty impressive.