New Highs Again and Trending Stock Scan for Reversal Day Sept 19

Perhaps not surprisingly, the stock market pushed yet again to another intraday high today as the non-stop bullish uptrend continued, yet this time we saw a quick retracement down to the rising trendline.

Let’s start with our updated, uptrending S&P 500 intraday chart:

A stable rising trendline pattern contains the progressive higher highs and higher lows and it should be our market reference point until proven otherwise with a breakdown under the rising level.

Today’s session low represents the lower boundary near the 2,007 level and it will be our focal point (bull above; bear beneath) going forward.

Perhaps as a result of the morning weakness, Sector Breadth is slightly Bearish/Cautious:

While we have moderate sector performance (most sectors show 50% of stocks positive), we do see that Utilities tops the performance of the day and that’s a bearish sign.

Relative strength – though not by much – still concentrates in the Staples and Health Care (the other defensive names).

Potential bullish trend day continuation (buy retracements) stocks include the following:

Vertex Pharma (VRTX), Mallinckrodt (MNK), Dr. Pepper Snapple Group (DPS), and Verizon (VZ).

Today’s downtrending stock scan includes the following bearish candidates today:

Garmin (GRMN), Corning (GLW), Flir (FLIR), and Fossil Group (FOSL).

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://ift.tt/178Lhrq

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

Afraid to Trade.com Blog

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September 5 Reversal Play and Market Update

The market has reversed course each day this week and today’s session is no exception.

Let’s update our rangebound S&P 500 intraday chart, highlight sector breadth, and end with our strongly trending stock scan of the day.

The S&P 500 has remained in a rather violent trading range the last few sessions as volatility has expanded (along with intraday range).

As mentioned, each session from the start of September has developed a sharp intraday reversal. Today’s session reversed up from the 1,990 level on divergences.

Study prior divergent reversal examples from the week.

For now, we’ll note the rising trendline into the 2,004 level and will continue to play bullishly above 2,005 (to ‘fill out the range’) or else will be cautious on any sudden movement down against 2,005.

Sector Breadth, while mixed, tilts bearish:

Our strongest sectors of the day are the Defensive Group which includes Staples, Health Care, and Utilities.

Our weakest sectors are the core of the Offensive Group including Financials, Discretionary, and Materials.

Despite mixed or even slightly bearish sector performance, we can focus on bullishly trending candidates:

Wal-Mart (WMT), Microsoft (MSFT), Nike (NKE), and Xcel Energy (XEL).

Bearish trending candidates – some with potential reversals – include these stocks:

Dollar General (DG), Goodyear Tire (GT), Regeneron (REGN), and Noble Corp (NE).

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://ift.tt/178Lhrq

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

Afraid to Trade.com Blog

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