What is the Next Move in Healthcare?

I have been watching the Health Care ($XLV) sector since it broke out in mid-May, after a month long consolidation between $71-$73. The $73 represents new support and I would expect that we have some continuation to the upside as long as $73 holds.

Names like Johnson & Johnson ($JNJ), Pfizer ($PFE), and Gilead ($GILD), are on my bullish radar screen – especially if the ETF ($XLV) can break $75.

I would stay away from this sector if price action breaks below $73, until it hits support in the $71 area. A break below the March-April lows would reverse the bigger uptrend. I also like this sector because it held up very well when the large-caps were under pressure in the previous session.

Have a good trading day.