Markets attempt at an afternoon rally lost steam with both the Nasdaq and S&P 500 in the red falling .8 and .6%. The Dow which we rarely follow did record a bearish shooting star candle today. following doji’s Monday and Tuesday, after a 1300 handle move since the end of September. The S&P 500 is walking a tightrope along the 2020 handle which was resistance on 9/18 and then again the in early October before climbing above that wall last Thursday. Could old resistance become new support. This week should answer that question. Energy and healthcare were among the laggards Wednesday and we had a major move in shares of VRX. The pharma play was bludgeoned today and did manage to reverse somewhat and huge events like this can often mark dramatic turning points. We had the Glencore news not to long ago. Could this be another big moment? Within the healthcare space when a sector is under this much pressure it pays to move to the sidelines and determine which names are exhibiting strong relative strength. MYGN may fit that bill. Today it bounced off the round 40 figure precisely and a look on its weekly chart shows a good looking double bottom with handle trigger of 41.91. The pattern began the week ending 4/4/14 this 18 month base very attractive with its length. Merger activity continues at a heightened pace with KLAC and LRCX joining and WDC buying SNDK. Are these acquirers seeing value just before a big year end rally or maybe they think easy money policy is coming to a halt sooner rather than later.
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