Sector Watch-Housing
Healthcare (HMO)
Bearish
Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES
Sentiment:Analyst rankings on the sector indicate that roughly 50 percent are “buys” or higher. Short sellers continue to avoid the group. The average short-interest ratio for the components of HMO sits at 1.4, leaving the sector without any short-covering support.
Outlook: The Morgan Stanley Healthcare Payors Index (HMO – 1,797.1) is facing long-term resistance at the 1,800 level, which the index has logged only one weekly close above since the start of the year. A rejection at this level could result in a sharp decline as the last of the bulls are shaken out of their positions.
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