Don't Ignore This Chart!

This Industry Group Has Broken To An All-Time High

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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!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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