The S&P 500 is now up more than 11% off its February lows, and the index — along with seven of ten sectors — is now up on the year. But one sector that has been totally left behind during this rally is a former market leader — Health Care. As shown below, the sector remains down 8.2% year-to-date. The Energy sector was the clear market laggard in both 2014 and 2015. Health Care looks to be taking its place in 2016.
Check out the chart below showing sector breadth levels as measured by the percentage of stocks trading above their 50-day moving averages. The S&P 500 and nine of ten sectors now have 90%+ of stocks trading above their 50-days. Those are absolutely massive readings. But Health Care sticks out like a sore thumb with a reading of just 55.6%. Clearly this is an area that investors are lightening up on or completely avoiding altogether as the former losers (Energy, Materials, Industrials) catch huge bids.