Biotech bounce a welcome development for Healthcare

Key Takeaways

  • Sideways consolidation still ongoing for US equities and no real technical takeaway
  • Dollar/Yen rally could bring about Japanese Equity outperformance
  • Biotech bounce is a positive for Healthcare after recent underperformance  

The short-term sideways consolidation in Equities remains very much in place and some of this stalling out in Equities is thought to be due to the recent uptick in Bond yields.  As discussed, while the 3-4 month trend for Treasuries likely does turn higher (and yields lower), the short-term technical suggest a move back to new monthly highs is likely for Treasury yields.  This could prove to be a headwind for Equities in the month of June.  However, for the immediate future, no important technical takeaways are present, given the ongoing choppiness for US indices in recent days.  Equity strength into June FOMC is likely to temporarily reverse course for a pullback in Stocks into end of month.  At present, it’s right to remain bullish, as no technical evidence of this exists as having gotten underway. 

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