Is Health Care Setting Up for a Reversal? 🌤️ The Morning Print

Good morning! 

The Health Care ETF is flashing a bullish RSI divergence after failing to breakout above its 2024 highs.

Let's take a look.

Health Care (XLV) came into the year with strong upside momentum.

It staged a powerful rally off last summer’s lows and registered its highest daily RSI reading since 2018.

The advance then stalled at the September 2024 highs. 

Following that rejection, XLV sold off sharply, dropping roughly -10% in about a month.

The sector has now made lower lows, while momentum (RSI) has held a higher low, a classic bullish divergence.

So, is it time to step into Health Care?

If this divergence remains intact and price can reclaim the pivot lows near $143, that level could serve as a defined risk point for a tactical long entry.