SPDRs Select Sector Health Care ETF (XLV) has been a weaker performer weaker than some of the other sector ETFs. If the larger market is now heading into a more serious correction, then XLV could lead.
XLV ETF Chart – Daily
The first sign of weakening was a break of the long term trend line break back in early February, followed by another rally in attempt to reach new highs which failed, creating a lower swing low. A smaller uptrend line was broken a couple weeks ago with XLV selling off last week with increasing volume on Thursday.
If this a more serious correction then XLV could retrace to the 38.2 per cent Fibonacci level of the larger uptrend measured from the low of March 2009, which is $28.76. (www.etf-portfolios.com)
