The Health Care Select Sector SPDR Fund ETF (NYSE:XLV) has been ripping higher, while the Technology Select Sector SPDR Fund ETF (NYSE:XLK) has been getting crushed. This could be a classic flight to safety and that’s bearish for the market.
A flight to safety occurs when investors sell stocks that are perceived to be risky and buy stocks that are considered to be safer. XLK follows the technology sector, and it’s considered risky. XLV follows the health care sector, and it's considered to be safer.
Regardless of how bad the economy is, people still need health care.
As you can see on the following charts, technology has been in a steep downtrend. Meanwhile, the health care sector has been moving higher.
Many analysts think a flight to safety is a bearish dynamic in the market. It could mean a new downtrend is forming.
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