April 4 Reversal Update and Bearish Stock Scan

Apr 4, 2016: 2:56 PM CST

A logical pullback (retracement) took price back to a key intraday support level.

What’s the level?  What do we do now?!

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

We were expecting a logical pullback or retracement given negative divergences into the 2,075 target.

That’s what we’re seeing right now as the S&P 500 fully retraced to the key 2,064 level – a horizontal pivot.

A triangle has formed with bullish breakout potential above the 2,065/2,067 levels just as a fresh breakdown opportunity triggers if price falls under 2,062 then 2,060.

Watch these compressing levels closely and plan (trade) accordingly.  We’ll discuss more in tonight’s report.

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

We’re seeing widespread selling pressure strike the market.

Our strongest sector today is the Health Care group while all other sectors – and over 70% of stocks – are down on the day.

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:

Edwards Lifesciences (EW), Stratasys (SSYS), AbbVie (ABBV), and GlaxoSmithKline (GSK)

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

Brookfield (BAM), Borg Warner (BWA), Smith & Wesson (SWHC), and Nike (NKE)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

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