Healthcare Out of the Box

$XLV

The Healthcare sector ETF XLV 0.00%↑ is breaking out to multiyear all-time highs after a sideways consolidation period of over two years. We can see the ETF has reached overbought measures numerous times during this move from last October. A look back to 2021 shows a somewhat similar stretch in price action.

The relative chart is a bit more insightful, as it highlights the outperformance of XLV 0.00%↑ throughout the first half of 2022.

This could be the start of a large base breakout for Healthcare stocks, and the relative chart suggests they may provide some cover should the SPY 0.00%↑ pull back in any way.