Chart of the Day - Wednesday, May 14, 2025

• 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 together. In other words, momentum is confirming the recent weakness. 
   

The Takeaway: UnitedHealthcare ($UNH) has shed -50% amid a five-week losing streak. Price and momentum are both reaching multi-year lows, suggesting the 'falling knife' hasn't hit the floor yet.