UnitedHealth is Unhealthy ๐ The Daily Chart Report
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Todayโs Summary
Wednesday, May 14, 2025
Indices: Nasdaq +0.57% | S&P 500 +0.10% | Dow -0.21% | Russell 2000 -0.88%
Sectors: 3 of the 11 sectors closed higher. Technology led, rising +0.65%. Health Care lagged, dropping -3.01% to a 52-week low.
Commodities: Crude Oil fell -0.82% to $63.15 per barrel. Gold inched dropped -1.83% to $3,188 per oz.
Currencies: The US Dollar Index inched higher by +0.09% to $101.02.
Crypto: Bitcoin is currently down -0.56% at $103,551. Ethereum is down -2.80% to $2,605.
Volatility: The Volatility Index rose +2.08% to 18.61.
Interest Rates: The US 10-year Treasury yield rose to 4.542%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
๐ Today's Chart of the Day was shared by Scott Brown (@scottscharts).
- UnitedHealth Group ($UNH) has shed roughly -50% amid a 5-week losing streak, closing at a four-year low today. The stock has been a notable drag on the Dow and the Health Care sector.
- Two of its worst days since 2008 have occurred in the last month alone. It tumbled -22% after earnings a few weeks ago, and nearly -17% yesterday. It's tempting to buy a blue-chip name on sale like this, but catching a falling knife can be dangerous
- Scott points out that RSI printed its most oversold reading since 2008 today. A divergence would be bullish, but price and RSI are making multi-year lows simultaneously. In other words, momentum is confirming the recent weakness.
The Takeaway: UnitedHealthcare ($UNH) has slid -50% amid a five-week losing streak. Price and momentum are both hitting multi-year lows, suggesting the proverbial 'falling knife' hasn't hit the floor yet.
Quote of the Day
"It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower."
- William O'Neil
Top Links
Bullish Breadth Improvement Suggests Further Upside For Stocks - David Keller
David Keller examines the recent improvement in market breadth.
Outside Days Offer Intriguing Options Opportunity - Schaeffer's Investment Research
Rocky White looks at how stocks tend to perform after a bullish outside reversal at a 52-week low.
The Stock Market Comeback - CappThesis
Frank Cappelleri looks at what could be next for the S&P 500 after the recent rally.
Holy Smokes, Are the Lows In? - Facts vs. Feelings Podcast
Ryan Detrick and Sonu Varghese discuss the rebound and more.