The Health Care sector has been one of the strongest areas of the market over the last few years, driven largely by the Biotech group. But lately, not so much. In fact, in the S&P 500 there is not one Health Care stock trading above its 50-day moving average. Below is a chart showing the percentage of stocks in the Health Care sector trading above their 50-days going back to the start of 2008. As shown, this reading has only been at zero two other times over the last seven years — once during the depths of the Financial Crisis, and another time in late 2011.
One trend to note in the chart is that breadth for the sector really began to weaken earlier this year, even as the sector’s price continued higher.