Sentiment has come back in full swing in several sectors
Sentiment in biotech, consumer staples, and health care has surged. It's not hard to understand why. Biotech companies are working on vaccines, consumer staple businesses are among the few businesses that are open, and health care companies (well, you get the jist of the idea). On the other hand, businesses shutdown by the health crisis have done poorly.
IBB Optix's 10 day average is at 76:
When this happened in the past, IBB often pulled back over the next week:
Meanwhile, XLP Optix's 10 day average is at 80, one of the highest levels in years:
When this happened in the past, consumer staples often did poorly over the next 2 weeks:
And XLV Optix's 10 day average is at 78:
When sentiment towards health care was this high, the healthcare sector often faced weakness over the next few weeks and months: