This fish has recently been identified as a color variation of the Cocoa Damselfish. I originally posted photos here to aid in identification. It lives off the panhandle Florida and is very common. The juvenile has all the traits of a cocoa damselfish, distinguished by the black spot at the base of the tale. The adult is distinguished by the flourescent blue colors on its fins and especially the tail. It is often seen in large colonies that include various stages of the juveniles and adults. The colony may also include yellowtail reeffish and purple reeffish. However, nesting adults are solitary. They have been found on artificial reefs in depths of 25 to 90 feet deep.
Thanks for this page! I saw these guys in the Gulf off of Venice this past weekend, and couldn't ID them based only on the pictures in my 3rd Edition DeLoach/Humann Reef Fish ID book. Showing your webpage to my sister may be enough to get her back underwater off Florida to see a fish variation she hasn't yet seen. Yay!