VRX Undermines the Health Care Sector XLV

Sympathetic selling pressure amid the Valeant Pharmaceuticals International, Inc. (VRX) debacle no doubt has negatively impacted the entire health care sector, which we notice has pressed from its recent high at 68.55 (print basis) into the 67.00 key, near-term support zone.

A new reaction low print of 66.75 will trigger a near-term sell signal that will project Health Care Select Sector SPDR ETF (XLV) into the 65.25-65.00 area.

It is with the foregoing in mind that I keep my protective stop at 66.75 intraday in our Model.

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