Health Care Select Sector SPDR Fund's prevailing uptrend hits the buffers

• Price action honing in on likely support at $128.77
• Price action is currently stuck around the active Fibonacci support level of $130.34

Though in the midst of a 6 day uptrend, gaining a total of 2.34%, ($4.05), Yesterday's session suggests run might be coming to an end — a tough session dominated by bearish sentiment left XLV $1.09 lower, while setting a $129.14 to $131.36 session range.

Health Care Select Sector SPDR Fund reached a significant high of $140.1 around 5 months ago but has lost 6.65% since then.

Health Care Select Sector SPDR Fund made an initial break below its 21 day Simple Moving Average at $130.61, a possible indication of a forthcoming negative trend. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. Price action remains constrained around the key Fibonacci level of $130.34 currently serving as support. If price action breaks below, the next Fib hurdle is $129.08. On the other hand, note that Health Care Select Sector SPDR Fund could begin to recover as it approaches significant support, now 93 cents away from $128.77. Dipping below could be an indication that further losses are ahead.

Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting Health Care Select Sector SPDR Fund to extend its recent losses.

Fundamental indicators – United States API Weekly Crude Oil Stock came out at -1.71 million, while a consensus of analysts was expecting 1.5 million.

In the meantime, negative performances are also seen in other markets, Merck falls 2.74% yesterday and closed at $113.11.

Other assets are showing positive performances as Intel went up by 3.68% yesterday, and closed at $30.96. Toyota rallies 1.89% yesterday and closed at $145.73.

Upcoming fundamentals: United States Crude Oil Inventories projected to come out at 1 million — worse than previous data of 4.49 million; data will be released today at 14:30 UTC.