TECH-DRIVEN NASDAQ MARKET LEADS STRONG STOCK RALLY -- HEALTHCARE SPDR HITS NEW RECORD -- SO DO HEALTH INSURERS

STOCKS HAVE ANOTHER STRONG DAY... Major stock indexes are trading sharply higher as we await the results of the presidential election.   Increased expectations for a divided government may be helping fuel today's strong stock reaction.   The three charts below show the three major stock indexes rising above their 50-day moving averages after bouncing off chart support near their September lows.  A strong rally in technology is giving an especially strong lift to the tech-driven Nasdaq market.   One of the more notable intermarket moves today is an 10 basis point drop in the 10-Year Treasury yield.    That creates an unusual situation where bond prices and stocks are rising together.   Nine market sectors are in the black with the biggest gains in healthcare, communications, and technology.  The healthcare sector is having the day's best performance and is setting a new record.

HEALTHCARE SPDR AND HEALTH INSURERS HIT NEW RECORDS...Chart 4 shows the Health Care SPDR (XLV) breaking out today to new record territory.   While some biotechs and drugs are up sharply, the biggest gains are coming from health insurers.  Chart 5 shows the Dow Jones Healthcare Providers Index hitting a new record as well.   Some of its biggest gainers include Cigna (+14%), Anthem (+12%), and Unitedhealth (+10%) with the last two hitting new records.  One explanation for that strong performance is that a divided government (with Republicans holding the Senate) is a net positive for the healthcare industry.  That may be true of stocks in general.