Express Scripts (ESRX) drops thru key support and looks like a potential short. Key support was 65 and it's currently trading at 64.06 (low of the day). 65 is the neckline of the right shoulder of the bearish Head + Shoulders pattern that ESRX has formed over the last 3 years.
Will see where it closes today, and then watch to see if it comes back up to re-test 65. If - 1) it doesn't return to re-test 65, or - 2) it does return but the re-test fails, then that's the signal to go short (#1 if you're aggressive, #2 if you're conservative).
Fwiw, this is how most of the TA crowd evaluate a potential short, based on their time tested 'rules', as opposed to using emotions, vague hunches, etc. Once it's clear that key support has been broken and will not be regained, longs will throw in the towel and dump, and the shorts will initiate positions. No guarantees, but these rules are so commonly used that the outcome tends to be self fulfilling.
With ESRX, among other problems there is reportedly a growing concern that they will lose their biggest customer.
