Back to an Old Flame

Amid a choppy summer market, trade wars, Fed debate, software corrections, and oil volatility its the fact that the healthcare sector largely took a summer vacation. In other words, gauging the XLV (healthcare sector ETF) updated daily chart, below, we can see the late-summer chop amounted to a rather attractive base when it was all said and done.

And with this morning's push higher, healthcare is now making its best bull case in months. 

Old flames like Guardant Health (GH) quietly drifted lower, seemingly on a daily basis this summer, down to its rising 200-day moving average. Elsewhere, once-hot emerging names like TDOC are suddenly back to the upper end of multi-month ranges. 

Without question, this market still has many moving parts which must be monitored closely. However, bulls are putting forward a good case that with the FOMC behind us we may be in a spot where sectors like healthcare can perk up after putting in months of nitty-gritty work to build new bases.