Chart Botox:
Large-cap bio/pharma names have given some comfort during the market meltdown, but even those “defensive, mature” names are starting to break. MRK for one has advanced just 3 of the last 16 sessions and may bottom temporarily here before building the right clavicle in a bearish head and shoulders pattern. LLY recorded a cup base breakout above a 314.10 pivot on 5/27 and lasted just one day, a major red flag. AMGN has been holding up ok but is now lower 10 of the last 12 days. BMY, one of the better actors is just 8% off its most recent 52-week highs but seems like it wants a date with its upward sloping 200-day SMA in the 67 area. Below is the chart of one of the former best-of-breed players within and it has underperformed its aforementioned peers now 21% off highs made in April. The chart can use some of its Botox product to shine it up a bit. Of course, that was a stab at humor but it could see a bounce in this area as it looks to touch its 200-day SMA for the first time since late last October.