- The Health Care sector ($XLV) kicked off the quarter with a bang, jumping +3.1% today after yesterday’s +2.4% gain, posting its best two-day gain since the COVID vaccine in November 2020.
- On a relative basis, $XLV/$SPY just logged its best two-day surge since November 2008. Before this week, Health Care was the worst sector YTD, but it's back to positive territory for the year.
- Wingman notes that $XLV busted out of a six-month range today, filling its Liberation Day gap. While the recent pop leaves $XLV extended in the short term, a long-term trend reversal is now in play, and rotation into this beaten-down sector could continue in Q4.
The Takeaway: Health Care ($XLV) just posted its best two-day gain since 2020, and its best relative gain since 2008. While stretched in the short term, a long-term trend reversal could be developing for this laggard.
