April 7 Range Day Resistance Market Update and Stock Scan

Apr 7, 2015: 1:44 PM CST

Stocks are taking a breather after yesterday’s strong bullish trend day.

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

We were expecting the likely bullish action off the 2,045 pivot all the way toward the 2,080 target and price exceeded the intraday target yesterday.

However, today’s session – though still bullish – is met with lengthy negative divergences into resistance.

We’re cautious against 2,090 and bearish (intraday) under 2,085 and 2,080.

Otherwise, a surprise resurgence of the buyers into resistance just makes us bullish above 2,090.

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

While yesterday’s Breadth Chart saw bullish dominance, today reveals more rotation.

The strongest sectors are in the middle of the graph while the weakest sectors are on the outside:  Utilities, Financials, and Discretionary.

Continue a defensive posture here unless buyers surprise us once again as they’ve done many times before.

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

Axalta (AXTA), Impax (IPXL), Autohome (ATHM), Juniper (JNPR)

Potential downtrending candidates exist in stocks showing relative weakness today:

Duke (DRE), PDF Energy, Omega Healthcare (OHI), and Brinker (EAT)

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “April 7 Range Day Resistance Market Update and Stock Scan”

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