April 30 Fed Day Midday Intraday Trading Update

Apr 30, 2014: 12:40 PM CST

We’re all waiting eagerly for the announcement and volatile market action that often accompanies “Fed Day” sessions.

With a few moments to go until the announcement, let’s frame the trading day, focus on key levels to watch in the aftermath, and note potential intraday trading candidates on this special occasion.

I’ve been highlighting the broader levels and game-planning expectations to members in more detail.

A quick glance reveals a ceiling of overhead resistance as price scrapes against 1,880.  This means that any impulsive breakout post-Fed Announcement could propel price back to 1,890 or higher on a short-squeeze breakout rally.

Otherwise, the divergences into resistance suggest caution if not logical bearishness.

I can’t state this enough – despite logic for a sell-off against resistance, a clean breakout today could propel the market instantly higher via the stop-losses of logical bears/sellers.  Don’t get trapped in a short-squeeze fueled breakout should it occur.

Otherwise, a bearish downside reversal pathway opens up under the 1,870 index level.

Our Sector Breadth reveals bullish money flow similar to yesterday:

Like yesterday’s mid-day update, we see money flowing into the “Risk-On” or offensive sectors such as Technology, Materials, and especially Industrials.

Our weakest sectors today are Energy and Health Care.  Nevertheless, the Fed Announcement and knee-jerk money flow movement could upset this balance quickly.

Use caution today as you select intraday trading candidates such as the following intraday trending stocks:

Ameriprise Financial (AMP), Carnival Corp (CCL), Total System Services (TSS), and Marathon Oil (MRO).

Exelon Corp (EXC), Nordstrom (JWN), Teco Energy (TE), and Baxter Int’l (BAX).

Be sure to read my prior stock-specific updates on a likely reversal down in Exelon (EXC) and the recent breakdown outcome in Bank of America (BAC):

Short-Sale Swing Candidate/Lesson for Exelon EXC” (triggering today)

Critical Trendline Channel and Trade Planning for Bank of America (BAC)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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