Not every stock on the New York Stock Exchange is bearish, but in our scans, we keep finding top patterns. Another top pattern can be found on Quest Diagnostics (DGX). Maybe it is time for a second opinion.
Looking at the chart of DGX above, if you look across the $70 level, you can see prices spent seven months above that mark. Every rally above $75 failed, with prices ending back at $70 again. That $70 became what chartists call support -- a level where buyers are expected to return. Last month, DGX broke below $70 and rebounds to that level have failed so far. When you have traders go long DGX at $70 over the course of several months, and then you break below $70, they are "underwater" and will use rallies toward $70 to sell so they can "break even." The $70 level has become resistance -- a level where selling interest is likely to cap the advance.
Quest has not had a huge advance, which could make it vulnerable to a deep correction, but a modest decline to next support around $60 seems like the path of least resistance.
Remember ¿ nothing after midnight.