Health-care sector triggered Wall Street's worse two-day slump in eight months

• The Dow Jones Industrial Average plunged a whopping 361 points.
• Big names planning to partner to reduce health care costs.

US indexes plunged this Tuesday, posting their worst two-day slump in eight months. The Dow Jones Industrial Average closed at 26,077.58 its lowest settlement in over a week, losing in the day 361 points or 1.37%. The Nasdaq Composite settled at 7,402.48, down 64 points, while the S&P ended 1.09% lower at 2,822.42. Strength in bond yields and a sell-off in health-care stocks weighed US indexes lower after big companies such as Amazon and JPMorgan Chase announced they would partner in an effort to cut health care costs and improve services for their employees. Just 4 Dow members closed with gains, with Caterpillar being the best performer by adding 1.24%. UnitedHealth Group led decliners with a 3.87% lost, followed by Pfizer that closed 3.10% lower.

The Dow has further room to fall, as the daily chart shows that the index fell down to its 20 DMA, testing it for the first time since early January, while technical indicators continued retreating from extreme overbought levels almost vertically, the Momentum now around its 100 level, and the RSI at 56. Shorter term, and according to the 4 hours chart, the risk is also lean toward the downside, as the index broke below its 20 SMA, now turning lower, but stalled a few points above a bullish 100 SMA, now offering support at 25,995. Technical indicators in this last time frame maintain their sharp bearish slopes near oversold levels, in line with the longer term bearish perspective.