The improved outlook for the health care industry comes as many expect continued growth in the sector, despite an ongoing so-called earnings recession in the S&P 500. While FactSet anticipates the broad S&P 500 to show an earnings decline of -9.1% for Q1 2016, the health care sector is expected to report revenue growth of 8.9%.
Related: Resisting Biotech ETFs
S&P Global Market Intelligence also mirrors this sentiment, projecting S&P 500 Q1 EPS to decline 7.5% year-over-year but anticipating 2.9% earnings growth for the health care sector.
“The previous attempts to hold support levels can be seen on the long-term daily chart of the index, below, with the 2014 and 2015 highs defining a major downtrend line. The latest consolidation currently underway is centered around the $270 level, and the integrity of this level could determine whether the primary downtrend remains intact, or the index begins a transitional shift in its long-term direction,” adds TheStreet.com.
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iShares Nasdaq Biotechnology ETF
