The insurance industry group is off to a strong start to 2025, with the KBW Insurance index (referred to as the ‘KIX’) having a year-to-date total return of nearly 10%. This is 8.61% higher than the S & P 500 Index . Intermediate-term momentum is weak for the S & P, and at the same time many insurers have positive technical catalysts on their charts, which differentiates them positively. Outperformance from insurers is likely here to stay in 2025 per the ratio of KIX to the S & P 500, which has a relative breakout confirming an inverse head and shoulders pattern. This pattern often signals long-term bullish reversals, meaning that insurers are set up well to continue outperforming the S & P 500 in 2025. An individual stock we found compelling is the The Hartford Insurance Group (HIG) , which cleared initial resistance from its daily cloud model last week. Short-term momentum is to the upside, and there is room to resistance near $123, which goes back to the October peak. The daily stochastics are in short-term overbought territory, but we expect upside momentum to help HIG weather those conditions in the coming days. The rally in HIG has been meaningful enough to shift intermediate-term positive, evident in a bullish weekly MACD crossover. This is the first crossover since August of last year, and it suggests that a corrective phase has matured for HIG. Should HIG clear resistance, it would target an intermediate-term measured move projection of roughly $134. Initial support HIG is now defined by the daily cloud. The top boundary is near $115, but more important support is near the bottom boundary, near $110. This level holds greater significance since it is bolstered by the 50- and 200-day MAs. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . 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Source: One group of stocks is off to a hot start this year. How to play it from here
