S&P 500 Life and Health Index:
Attractive breakout of its one-year downtrend, but potentially even more interesting to some from a risk/reward perspective, as this lies 12% below former highs.
Property and Casualty stocks, as per S&P 500 Prop and Casualty index, has remained quite resilient over the years, outperforming Life and Health.
Ratio charts of Life/Health to the Property Casualty stocks show the underperformance which is slowly giving way to a counter-trend bounce, technically speaking.
Thus, Life and Health names very well could outperform in the near-term.
Financials (NYSEARCA:XLF)  have been trending up steadily vs the S&P 500 Index (SPX). Breakouts of this downtrend would portend a greater period of relative strength for this group, which at 2nd greatest composition of the SPX, would be meaningful, likely in helping to provide a tailwind for stocks at a time when most are viewing the S&P’s rally into September with great trepidation.
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The author has a position in AFLÂ at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
