XLV Healthcare Weekly and Daily Charts Rising Wedges Overbot Negative Divergences

The XLV healthcare sector is displaying textbook rising wedges on the weekly and daily charts. The indicators are showing universal negative divergence across the board. Nasty set up, XLV is on marked time right now and should receive a serious smack down any day.  The short green lines show a tiny amount of upward strength remaining so a stutter step or two as price tops and rolls over would be in order. An initial downside target is 35-36 within the next couple months. Note the weaker volume participation as price moves higher.  As price drops, the buyers in June will be jumping off like rats leaving a sinking ship.

Over the last three months, since the June bottom, the media pundits and analysts have been pumping healthcare as a safe haven play, just like the Dividend Stock Bubble pumping, as well as utilities and other high dividend plays. Every run higher needs a bag holder so the best way to do that is to pump XLV on television and in print to attract Ma and Pa, always the last ones to the party. Higher volume down days are occurring after an up day showing that the smart money is distributing to the sucka's. Call Ma and Pa today and have them reconsider healthcare holdings. XLV has had a fantastic run since the June low, take the money and run. Healthcare can be reentered after the negative divergence performs its deeds in the coming days and weeks. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.