The Long-term dynamics in the Health Care Sector are very interesting. I love it when the market could be telling us something about what is going on in politics, and that could be the case here.
The XLVs began a sustained long-term rally when President Obama took office. One could argue that this is due to the large profits that Healthcare companies made as a result of 'Obamacare'. Now President Elect Trump says that he wants to repeal it.
As these macro political forces evolve, the XLVs could be making a multi-year reversal pattern. This is Bearish for this sector and would suggest that Trumps repeal would in fact send the Sector lower.
The well-defined uptrend that began in 2011 was broken in August of 2015. Then in August of 2016 they turned over at a lower top and have been trending lower since then. This has formed what Technicians traditionally call a 'double top'.
If support around the $64 level breaks there could be a large move lower because there are no clearly defined support levels until it gets significantly lower. $64 was support in September of 2015 and in early 2016.