Consolidation Day

The market ended marginally lower today, weighed down by declines in health-care and energy shares.

Biotech gave back some of yesterdays breakout. As you can see in the chart below, yesterday IBB broke above the red downtrend line that has been in place since August. That was  key breakout.  For it to go back and retest the breakout area (yellow area) is completely normal.


The S&P 500’s health-care sector dropped 1.6% after UnitedHealth Group told investors it expected major losses from Obama’s Affordable Care Act  and will consider withdrawing from them.

Shares of United Health fell 5.65%. Insurer Aetna declined 6.5%, Anthem dropped 6.9% and Cigna fell 5.4%.

Retail continues to die a slow death and still look slower.

PACB broke out yesterday and had a beautiful follow through day today on double the volume.


See you in the morning.

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