As the equity market’s leadership broadens out, we are looking for opportunities to capture counter-trend outperformance within select subsectors. Insurance stands out, for one, with the group poised for further strength while individual names show differentiated technical setups. The SPDR S & P Insurance ETF (KIE) has been locked in a trading range, bound by resistance near $61 and support near $54. Now, KIE appears poised for a breakout as intermediate-term momentum has shifted positive. The ETF is also testing relative resistance as it stages counter-trend outperformance within its secular relative downtrend. A breakout in both absolute and relative terms would mark a more meaningful shift for KIE and support intermediate-term outperformance by insurance stocks. We present three bullish charts within the space. The Travelers Companies (TRV) has confirmed a breakout above resistance from its prior highs near $310, which now acts as support. The breakout coincides with a recent MACD buy signal, supporting upside follow-through alongside positive short- and long-term momentum. A measured move objective of about $341 can be derived based on the width of the recent range. Progressive (PGR) has seen a strong counter-trend move within its cyclical downtrend, reclaiming its 200-day moving average (MA) and bumping up against the weekly cloud, which spans from about $213 to $232. Intermediate-term momentum has improved meaningfully, supporting upside follow-through toward the top of the cloud. The counter-trend move remains intact for PGR above its 200-day MA, which is support near $208. Aflac (AFL) is testing final resistance near $119 and appears poised for a breakout. Our intermediate-term gauges have retained a bullish posture, while consecutive upticks in our long-term metrics reinforce the constructive intermediate-term setup. A measured move extension supports a technical target near $132. Support is approximately $112, defined by the 200-day MA and weekly cloud model. These stocks are poised to benefit from KIE’s improving momentum and relative strength, and they offer diversification for portfolios that have become concentrated. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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Katie Stockton says insurance stocks are breaking out. Here are 3 names that stand out
