Chart of the Day - Wednesday, February 5, 2025

Patrick Dunuwila
February 5, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Larry Thompson (@HostileCharts). 
 

  • Health Care ($XLV) was the second-worst-performing sector last year. However, it's currently the best-performing sector in the new year, rising +7.9% YTD. 
     
  • Larry points out that $XLV is testing a potential inflection point at $148. This level acted as resistance several times last year. It coincides with the 200-day moving average. 
     
  • The relative trend ($XLV/$SPY) has also improved. It's curling higher and carving out a small base after emerging from a multi-month downtrend line a few weeks ago. 
     

The Takeaway: Health Care( $XLV) is leading YTD and testing a potential inflection point after being one of the worst sectors last year.

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