A Real Face/Off

Teva Pharmaceutical Industries, an Israeli multinational pharmaceutical, is spiking higher this morning on news that Berkshire Hathaway disclosed a brand new stake in the firm, worth $358 million at the end of December, according to a regulatory filing.

Warren Buffett and his Berkshire may very well have seen blood in the streets here, given TEVA's steep downtrend for roughly two years, as seen on the weekly chart, below. 

Bonafide blood in the streets has been rare these days, given the uniquely resilient broad market we have seen for years. But TEVA certainly has been a glaring laggard after the highlighted head and shoulders top confirmed lower. 

You will also notice, however, that an inverse head and shoulders bottom is also highlighted. After a steep downtrend, the Buffett stake is coinciding with the bottoming formation, which gives us a face off versus the prior top and a bit of old-fashioned symmetry. 

I am looking to see whether TEVA can now clear $23 above to set the pattern in motion for a move into the mid-$30s. 

Elsewhere, equities are off to a solid start. But the S&P 500 Index is closing in on its 50-day moving average, just above spot price. I expect that test to be a pivotal one for at least the rest of this week.