Don't Ignore This Chart!

This Industry Group Has Broken To An All-Time High


2016 has not been a very good year, although the rally the past few weeks has alleviated some of the earlier pain.  I guess we should party like it's 1999.99 because that's where the S&P 500 closed on Friday.  Couldn't we just get one one hundredth of a point at the close to make it an even 2000?  Nope.  The S&P 500 is roughly 6% off its all-time high, but the Dow Jones U.S. Medical Supplies index ($DJUSMS) has broken into all-time high territory, and it's done it with heavy, confirming volume.  Take a look:

Prior to the market's August flash crash, the DJUSMS printed a negative divergence on its weekly chart and that led to much selling in August and September.  And during the early 2016 selling, the DJUSMS fell all the way back to key price support below 580 before its recent ascent.  Two individual stocks that have SCTR rankings over 90 in this space include Anika Therapeutics (ANIK) and Edwards Lifesciences (EW).  The former is a small cap stock while the latter is much larger.  Both recently broke out - ANIK to a 52 week high and EW to an all-time high.

Happy trading!


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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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