April 16 Daily Stock Market Update and Scan

Apr 16, 2015: 1:00 PM CST

This week has been “Divergence Week” where intraday reversals occurred on clear divergences.

It was logical to expect another reversal down against 2,110 – from divergences – and we did see the 10 point move down into support, from which today’s reversal occurred.

Let’s dive inside action and note key levels and the trending stocks of the bullish day:

Be sure to brush up on the “S&P 500 Range Planning” post for a broader perspective.

Note the negative TICK Divergence that occurred near noon PST with new price highs (and lower TICK highs) and the subsequent retracement down from 2,110.

The downside target was achieved this morning into the 38.2% Fibonacci Level and 2,100 clear “Round Number” support along with – you guessed it – another positive Market Internal divergence.

For now, we’re seeing a logical rally back toward the highs off support and we’ll frame today’s trades from that.

Let’s see what our Breadth Chart reveals about current market strength (or weakness):

Unlike yesterday, Breadth is muted and weak today with Energy as today’s top sector performer.

All other sectors – except Financials – are under the 50% line and weak – Utilities are the weakest.

We have potential bullish trend continuation plays in the following stocks from our scan:

Panera Bread (PNRA), Netflix (NFLX), Philip Morris (PM), and Tableau (DATA)

Potential downtrending candidates exist in stocks showing relative weakness today:

Teva (TEVA), Resmed (RMD), Embraer (ERJ), and Richie Bros (RBA)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Responses to “April 16 Daily Stock Market Update and Scan”

  1. Rehman Says:

    The trend seems to me is bullish and I feel it’s going to remain same over the next few weeks; therefore we should be very careful with how we work. I usually prefer doing long term trading and thanks to OctaFX broker, it has become relatively simple with their outstanding swap free facility, it’s an option that allows me to trade with comfort since I am not required to pay any charges for keeping long term trades on no matter how long it’s on for.

  2. Moeen Says:

    I think sometimes reversal does not come, so that’s why we
    need to be very careful with everything we do, I am always keeping my safe side
    and that’s why I work with OctaFX broker since here I am able to gain 15
    dollars profits per lot size trade and this is even with the losing trades too,
    so that’s definitely something to be pretty happy with and makes me seriously
    comfortable with the work and allows me to succeed.