Let's Have a Muppet Party

The price action in the "safe, blue chip" healthcare stocks today smacks of a bear raid in progress, with the VRX crash now spreading to the likes of MNK. HZNP LLY are also getting hit, as is PFE. 

With this in mind, if the selling does not relent after the FOMC tomorrow, we have our eyes on NBIX as  another short setup. On the daily chart, below, note the bear flag pattern in light blue after a sharp leg down starting in late-January. 

NBIX had been a holdout while HZNP VRX got clobbered last year. So it makes sense that it may be an optimal short again, if the XLV is going to stag a fresh leg down. 

Overall, the pertinent question to ask is where the risk is from here--Do we see the selling quickly dry out and another V-shaped rally in this sector, or do we see more booby traps and monsters hiding in the closet? 

I suspect the risk is of the latter scenario.