Healthcare being raised to Overweight after breakout

Near-term Equity trends are bullish, and it’s expected that QQQ will soon break out to join the move back to new highs, which has been seen in DJIA, SPW, DJ Transportation Avg., and MDY since the beginning of the year. While the broader market has shown better strength than Large-cap Technology lately, I expect to see Technology make a stand in the week ahead, following stabilization in AAPL, and a breakout in QQQ. Despite market breadth gauges having not yet reached levels seen last Fall, the breakout in Healthcare this week back to new highs is seen as promising for both SPX and QQQ gains into February.  Bottom line, it’s right to position in sector leaders like Industrials, Financials, and Technology with a renewed focus on Healthcare given this week’s strength. 

Arguably, this week’s breakout in Healthcare is a bigger positive for both $SPX and $QQQ than any recent development seen across the market for US Equities in recent weeks.

I’ll discuss this sector in a bit more depth in the columns that follow, but for now, it’s proper to take a look at the near-term price action of $SPX.

checkout-thomas-lee image
checkout-logo image

Become a Member To Access Fundstrat Research

Fundstrat Direct gives individual investors access to Tom Lee's research, previously only available to banks and hedge funds.

Monthly

$199/mo

First Month Free

Join Now

Annual

-15% $2,028/yr

List Price $2,388

Savings: $360/yr

Join Now

Why Join Fundstrat Direct?

Fundstrat Direct helps you invest confidently with the same research banks and hedge funds use to navigate the market.

Daily Strategy Icon

Daily Strategy from Tom Lee & Team

Stay ahead of consensus with daily updates on key developments & catalysts and opportunities ahead.

Real-Time Market Alerts Icon

Real-Time Market Alerts

Analysis on market-moving events and actionable opportunities delivered instantly from us to you.

Curated Stock Lists Icon

Curated Stock Lists

Choose the portfolio that best suits your investment style, preferred asset class, and time horizon.

Monthly Market Update & Top Ideas Webinar Icon

Monthly Market Update & Top Ideas Webinar

Attend engaging webinars with Tom & team featuring our top ideas and near-term market outlook.

Daily Technical Strategy Icon

Daily Technical Strategy

Receive tactical opportunities, actionable signals, and fundamental analysis from our proven research team.

Live Analysis on Your Holdings Icon

Live Analysis on Your Holdings

A monthly webinar featuring live analysis on member-submitted stocks and questions.

Disclosures (show)

Events

Trending tickers in our research