Health Care Takes A Hit

Health Care had been the best performing of the ten S&P 500 sectors year to date up until the last few days. Up until last week, Health Care was actually in overbought territory as investors sought refuge in a sector that is typically thought of as defensive in nature. As shown in the chart below, however, the sector has recently taken a big hit on news of higher pricing and new government-related plans for the industry. Just a few days ago, more than 80% of the stocks in the Health Care sector were trading above their 50-day moving averages. Currently the percentage stands at just nineteen. When government moves in, investors head for the hills.






Source:Bespoke Investment Group