In our previous Elliott Wave update on the Invesco S&P 500 Equal Weight Health Care ETF ($RSPH), we highlighted how the ETF was breaking out after nearly five years of sideways consolidation. We also explained that the structure favored additional upside toward $40+ over the coming quarters.
Since then, the breakout has continued to develop as expected. $RSPH has pushed decisively above its former resistance area and is now trading near $38. As a result, the previously highlighted $40+ objective is getting closer, while the broader Elliott Wave sequence continues to favor higher prices.
$RSPH Breakout Is Taking Place
Looking at the weekly chart, $RSPH spent several years trading inside a broad consolidation. That sideways structure contained price from 2021 through early 2026 and prevented a sustained trend from developing.
However, that environment has now changed.
$RSPH has broken above the upper boundary of the consolidation and continued to extend higher. More importantly, price has remained above the breakout area rather than immediately falling back into the previous range.
Consequently, the breakout appears genuine and supports the idea that a new trending phase has started.
March 30 Low Remains an Important Turning Point
The March 30, 2026 low continues to stand out as an important pivot in the Elliott Wave structure. That low appears to have completed wave ((2)), following the five-wave diagonal that ended in January 2026.
From there, $RSPH turned sharply higher and started building a new impulsive sequence.
The first advance completed wave (1), while the subsequent pullback ended wave (2). Since then, another strong rally has developed, supporting the idea that the ETF is now progressing through the more powerful portion of the bullish sequence.
Bullish Sequence Remains Incomplete
The latest price action suggests that $RSPH still has an incomplete bullish sequence.
Price has already broken above the prior consolidation, but the Elliott Wave structure continues to allow additional extensions. Short-term pullbacks in waves (4) can occur along the way. However, those corrections should remain supported before another push higher develops.
Therefore, temporary weakness should not necessarily be interpreted as the end of the breakout. Instead, pullbacks can form part of the developing impulsive structure as $RSPH works toward higher levels.
$40+ Is Now Within Reach
The $40+ area, which was highlighted in our previous outlook, is now becoming increasingly relevant.
With $RSPH trading near the upper $30s and maintaining its breakout, only a relatively small extension is needed to reach that objective. Furthermore, the Elliott Wave structure suggests that $40 does not necessarily need to represent the end of the larger move.
A sustained break above $40 would strengthen the bullish sequence further and could open the door to additional upside as higher-degree waves continue to unfold.
Therefore, $40+ remains the next important objective in due time.
Bigger Picture Favors Higher Prices
Perhaps the most important development is that $RSPH has finally escaped the multi-year consolidation that dominated price action for roughly five years.
Long consolidations often precede substantial directional moves once resistance finally gives way. In this case, the breakout has occurred to the upside, while the Elliott Wave count also supports an incomplete bullish sequence.
That combination keeps the larger outlook constructive.
Meanwhile, the broader bullish structure remains valid above the 24.87 invalidation level. As long as that level remains intact, the right side continues to favor higher prices.
Technical Summary
To summarize, $RSPH’s breakout from nearly five years of sideways consolidation is now taking place. The ETF has continued higher since the March 30, 2026 low and has moved decisively above its former resistance area.
The Elliott Wave sequence remains bullish and incomplete, suggesting that additional upside should develop after short-term corrective pullbacks.
Most importantly, the previously highlighted $40+ target is now coming into focus. With the breakout continuing to gain traction, $RSPH remains on its way toward that objective in due time, while the larger structure leaves room for even higher levels afterward.
