VRSN Crashes

VRSN broke out of a long sideways consolidation on May 4. After an apparent 3 wave pullback, it set up a proper buy pivot. I elected to go long at 23.70 with a stop under the pullback low at 21.90. On June 5, VRSN moved higher setting up a sell pivot. It was not acting very well, so I raised the stop to just under the sell pivot at 22.30. On June 8, VRSN crashed and I was stopped out for a loss of 6%. (The labelling above should read S2 for second stop. S1 is not shown.)

The Dow and SP-500 today finished as NR7 days, ie the range was less the range of any of the prior 7 days. This suggests a big move may be coming by the end of the week, if not tomorrow. I suspect the move will be to the downside, however, it could go either way. The key is to wait for confirmation with volume in either direction. For an upside breakout, I would look for a target of around 975 in the SP500. For a downside breakout, I am expecting a move to 850 to 875.

Wednesday's tend to be flat overall, so a morning advance will be suspect.

The financials, in particular, look very heavy right now. C is rolling over and other financial names may follow suit. Although the financials are no long the leaders of this rally, I think the market will correct with them if they break down.

Even though the broader markets are higher since the beginning of May, it doesn't feel like it. To me it feels as though they have been treading water for 4+ weeks now. A serious move in either direction would be welcome relief from this tedious market.