Medical Devices (IHI) has been showing relative strength as it trends above the 21 and 55-EMA since early summer.  The group was only down 1.3% during Monday’s market meltdown and held the top edge of monthly value on the dip. A strong trend that can continue in a defensive market environment. The daily chart shows the 55-EMA a bit lower at 64 and would be an ideal pullback level to eye on further market selling.  

The ETF has plenty of strong stocks in the top 5 weightings including Abbott Labs (ABT), ThermoFisher (TMO), Danaher (DHR), Medtronic (MDT), and Intuitive Surgical (ISRG). The top 2 names ABT and TMO are about 25% of the ETF. Looking at these charts in strong trends and seeing this group holding up strong as the market pulls back shows relative strength and an area to look to for potential upside once the market finds its footing.