Don't Ignore This Chart!

Pfizer Hits a Milestone for 2019


The S&P 500 hit a new high last week and the Health Care SPDR (XLV) broke out of a large symmetrical triangle with a big surge in June. The stock market is in bull mode and healthcare is coming alive. XLV was the worst performing sector from January to May (+1.27%), but turned around in June and is one of the top performing sectors (+7.85%). Also note that healthcare is the third largest sector (14.3%) in the S&P 500. Thus, strength in healthcare contributes to strength in the S&P 500.

On the price chart, PFE broke out of a large falling wedge with a big advance over the last nine weeks. Notice that this wedge retraced 50-61.8% of the prior decline. Thus, the 2018 advance looks like two steps forward and the falling wedge looks like one step backward. The recent breakout indicates that the correction has ended and the bigger uptrend is resuming. As such, I would expect new highs in the coming weeks or months.

The indicator window shows the Percentage Price Oscillator (PPO) dipping into negative territory in April and then turning up over the last few weeks. The PPO moved back into positive territory and back above its signal line. A positive PPO means the 12-week EMA is above the 26-week EMA and a PPO above its signal line means momentum is bullish.

Chartists looking for a pullback opportunity can watch the 41-42 area for first support. The stock is a little over extended after a double digit rise the last nine weeks. A little dip into this zone may be the short-term pause that refreshes.

On Trend on YouTube (Thursday, June 20th)

  • Long-Short Review (SPY, QQQ, IWM)
  • $SPX does not Care about Utes, Reits, Staples and Bonds
  • Revisiting Chinese and Semiconctor ETFs
  • Semiconductor and Software Stock Setups
  • Stocks to Watch: FISV, PPL, AME, FAST
  • Click here to Watch

Arthur Hill, CMT
Senior Technical Analyst,
Author, Define the Trend and Trade the Trend

Want to stay up to date with the latest market insights from Arthur?

– Follow @ArthurHill on Twitter
– Subscribe to Art's Charts
– Watch On Trend on StockCharts TV (Tuesdays / Thursdays at 10:30am ET)


Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus