Today’s Chart of the Day was shared by Renaissance Macro Research (@RenMacLLC). It's a chart of the Health Care Sector ETF, $XLV, over the past 21 months. The five largest components in this sector include $UNH, $JNJ, $ABBV, $PFE, and $LLY. The Health Care sector broke out to an all-time high today for the first time since December. Health Care is generally perceived as a defensive sector, along with things like Utilities, Consumer Staples, and Energy. All four of these defensive sectors have been outperfoming recently, which as Renaissance points out, is emblematic of a late-cycle environment. Seeing Health Care and other defensive sectors leading like this doesn't exactly paint a bullish picture for the broader market going forward. But regardless of what defensive leadership means for the broader market, Health Care stocks are breaking out and look poised to push higher.
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