Crocuses XLV-still dormant.

I thought I'd conclude today's sector review by showing you something that is not working. That lagging sector is healthcare. This is largely due to words and actions emanating from Washington regarding a restructuring of our healthcare system and is also influenced by major drugs coming off patent over the next couple of years that is currently perceived to have a large impact on some of our largest pharmaceutical companies.

1. Notice there is nothing yet resembling a "Golden Cross"-the green line is not close to crossing over the red.
2. Unlike the other indices or sectors we've reviewed XLV is nowhere near a major resistance point. In fact it is chugging along one of its major support lines.
3. Index and ETF is not as overbought. This also suggests that it and it's underlying stocks are lagging other areas of the market.

*Long XLV in certain client accounts.