Today's turnaround in the market wasn't a big surprise considering that VIX volatility hit contrarian levels on Friday's close. (The VIX short-term volatility index, VXST, dropped below 10--an indication that a market reversal is imminent.) The topping tails in the daily charts of all of the major averages are also strong signs that selling pressure will likely continue. Funds are flowing out of the higher priced biotechs (AMGN, BIIB, CELG, REGN). This action is reflected in the topping tails seen in the candlestick charts of the Biotech etfs (BIB, BBH, IBB) indicating that distribution will likely continue. Other areas where investors are booking profits are aerospace (BA, LMT, NOC) and transports (ALK, FDX, CP, CNI, UNP, CSX). On the international front, Chinese issues are starting to flag which is to be expected after their recent monster rally.

While some of the larger biotechs sagged, there were a number of smaller issues making bullish moves: 
1. Aerie Pharma (AERI, $34.97) broke above major resistance at $32 to hit a new high on twice normal volume. There was no news to account for today's move but there was unusual call action in the options on March 31st. The company is currently in clinical trials for its glaucoma eye drops and perhaps recent action in the call options is an indication that some folks in the know are expecting good results. 
2. Hospitalist provider IPC Healthcare (IPCM, $50.84) popped out of a one year channeling pattern (between $40 and $50) on slightly heavier than normal volume. The company has recently made three acquisitions in the past several months which is bound to affect the company's top and bottom lines. (Next earnings report scheduled for 4/22 after the close.) 
3. The stock of K2M Group (KTWO, $24.11), a maker of devices to treat spinal conditions, has been trading for nearly a year and today it broke out to hit an all-time high on no apparent news. The company has beaten estimates for the past three earnings report. It jumped nearly 7% following its last report and won't be reporting until 6/3. Only 11% of the float is held by insiders and institutions leaving plenty of stock for further accumulation. 
4. Merrimack Pharma (MACK, $12.88) makes drugs to treat pancreatic and breast cancers. Today the stock surged out of a two month consolidation pattern following vigorous call activity in Friday's options market. Again, it appears as if someone is making a big bullish bet.