Crash, Retrace, Reversal

With all eyes fixated and hypnotized by the A.I. bubble, behind the scenes, other markets have retraced and reversed.

They look ready to continue the next (major) leg … down.

One of those is UnitedHealth and the Healthcare Sector XLV (not advice, not a recommendation).

The last update on UNH, was back during the earnings implosion.

Two months later, UNH went on to post a (slight) new low, changing the retrace projections.

As is typical for this site, we’re going to look at UNH from a strategic, longer-term perspective, the monthly chart.

UnitedHealth UNH, Monthly

During the last melt-down in ’07 – ’08, UNH lost -75.60%.

For October just ended, we can see (zoom area), UNH retraced to 38.2%, rejected it, closing lower for the month.

Before everyone decides it’s a ‘slam-dunk’ lower, for UNH, in the markets, anything can happen. Amazon’s (AMZN) overnight launch (on earnings) comes to mind.

Next up, we’ll look at the Health Care sector itself and tracking fund XLV.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279