April 18 Intervention Bullish Break Market Update and Stock Scan

Apr 18, 2016: 2:17 PM CST

Buyers rushed in to halt a down-gap and sell-off this morning, resulting in a strong short-squeezed breakout.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

On the lower frame chart, we can see a “Flag” or AB=CD Price Pattern completing just shy of the full 2,000 target.

A gap-down occurred into the lower connecting trendline and the 2,075 support pivot.

From there, buyers intervened with aggressive buying, enough to trigger a breakout beyond 2,082 then 2,088 to extend an ongoing short-squeeze (bears buying-back to cover losing positions).

At this point we’re focusing on the alternate thesis breakout toward 2,000 which is occurring now.

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

We’re seeing across-the-board bullish domination in all sectors.

Both bears (short-sellers) are buying to cover as they join with the aggressive bulls buying new highs.

All sectors are positive and over 80% of S&P 500 and Dow Jones Industrial stocks are positive today.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Disney (DIS), Hasbro (HAS), Ball Corp (BLL), and Astrazeneca (AZN)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

DSW, ARM Holdings (ARMH), Apple (AAPL), and Netflix (NFLX)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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