Drug-Induced Crash

The Pharmaceutical Index
(
DRG.X |
Quote |
Chart |
News |
PowerRating)
is breaking down from a complex
head-and-shoulders pattern in today’s session, setting off a number of short
setups.

 

 

Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)
is resuming its meltdown out of a pullback from lows
after a couple of head fakes.

 

 

Ditto for Schering-Plough
(
SGP |
Quote |
Chart |
News |
PowerRating)
.

 

 

Johnson and Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating)
is probing below its converging 20- and 50-day moving averages on an expansion of range.

 

 

If this weakness throughout the sector continues, continuation
shorts could take shape in the next couple of days.

See ya tomorrow,

Duke