Markets spent the majority of the time Tuesday in the red and finished that way as well with the S&P 500 closing lower by .1% and the Nasdaq down .5%. The Nasdaq was affected by the biotechs once again, proving what goes down will continue to do so and longer than many may think. Remember a trend is more likely to continue then it is to reverse. VRX was pummeled more than 10% Tuesday as it looks to be changing strategy regarding acquisitions, which was the reason many believe the name was in such a powerful trend to begin with. I certainly do not catch falling knives but the chart is now back near a cup with handle trigger breakout of 147.49 made during the week ending 1/9/15. The pattern began almost one year earlier, the week ending 2/28/14, and we know the longer the base the greater the chances of success. That being said VRX is now close to 50% off recent all time highs. There was some merger activity in the space with AMSG buying TMH, with the acquirer dropping 4%, almost like old times. The market does seem to be digesting some poor earnings reports recently from the likes of KSU, IBM and MS to name a few. KSU, obviously important as it is a transport, and its strength is vital to an economy today showed some good relative strength testing the 8/24 lows and holding firm with a potential double bottom in place.
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