LIVE MARKETS-Recent healthcare decline presents entry opportunity for investors - SentimenTrader
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THE RECENT HEALTHCARE DECLINE PRESENTS ENTRY OPPORTUNITY FOR INVESTORS - SENTIMENTRADER
The recent decline in healthcare stocks presents an opportunity for investors looking to buy the dip in hopes of outsized market returns, according to SentimenTrader.
Data shows that the intermediate-term breadth (percentage of members above their 50-day moving average) of the State Street Health Care Select Sector SPDR ETF XLV.P experienced a violent compression, plunging from a robust 85% at the start of the year down to a depressed 10% last Friday.
This decline historically supports sustained sector outperformance, argues SentimenTrader, and could provide an entry point for investors.
"The sector has endured a severe internal washout, evidenced by intermediate breadth (% > 50-day MA) collapsing to 10% and upside momentum (Bollinger Band participation) effectively flatlining near zero. These deep oversold readings provide a potential entry point for investors looking to allocate capital to the healthcare sector over the next 6 to 12 months," SentimenTrader says.
(Chibuike Oguh)
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