April 23 Sector Breadth and Intraday Trading Update

Apr 23, 2014: 12:30 PM CST

With today’s Flat Range Day in motion so far, let’s take a look at our updated S&P 500 Sector Breadth and highlight which stocks are potential trend day trading (continuation) candidates.

By reader request, I’ll start adding a flash-chart of the intraday S&P 500 to provide a sense of structure and key levels to watch throughout the remainder of the trading day.

The trend of the market also determines which direction – long or short – we’ll focus most of our trades.

Here’s the current mid-day S&P 500 structure which is “triangulating” at the moment:

Internals (TICK) failed to confirm the spike-low into the 1,875 key level (they formed higher lows and price formed lower lows) and thus the strong reaction up to the 1,880 level was logical.

We now see price squeezing between two compressing “triangle” trendlines from 1,878 to 1,877, making a breakout above 1,879 a bullish breakout buy trigger (especially above 1,880) while a breakdown under 1,877 and 1,876.50 a bearish trendline/triangle trigger to target 1,875 or lower.

Our sector breadth at the moment shows a bit of caution and defensive intraday money flow:

We go back-and-forth between “Risk-On” and “Risk-Off” money flow, and right now we’re seeing sector strength concentrated in Utilities ($XLU) and Energy ($XLE) again (which has been the pattern on prior sell-days).

The weakest sector at the moment is Technology ($XLK) followed by Health Care ($XLV) and Materials ($XLB).

Note that over 90% of Energy and Utilities Stocks (in the S&P 500) are positive on today’s flat/bearish session.

Here are our potential bullish uptrend continuation candidates during a range day:

Dr. Pepper Snapple Group (DPS),m Apache Corp (APA), Fidelity National (FIS), and Gilead Sciences (GILD).

Our downtrend potential continuation candidates include the following ‘gappers:’

International Game Technology (IGT), Seagate Technology (STX), Intuitive Surgical (ISRG), and Keurig Green Mountain (GMCR).

Take a look at my prior educational update “Gaps and Traps in Intuitive Surgical ISRG” which provides additional information.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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One Response to “April 23 Sector Breadth and Intraday Trading Update”

  1. April 24 Range Sector Breadth and Intraday Trading Update | Afraid to Trade.com Blog Says:

    […] Continue watching the key S&P 500 intraday levels for any breakout from the range (reference yesterday’s triangle update). […]