Aug 21 Steep Selloff Market Update and Stock Scan

Aug 21, 2015: 1:54 PM CST

The Steep Stock Market Retracement continues with a breakdown under yet another support level (2,045) into a second impulsive trend-day type environment sell-off.

What levels are we focusing on now amid this large trend day? Let’s chart them:

Again, please take a moment to review the prior “What Two Breadth Charts are Saying about the S&P 500.”

Also, compare that with the real-time expected sell-off we’re seeing in today’s morning update: Weekly Chart Perspective of the Steep Stock Sell-Off

The 2,045 target only held price for a few hours yesterday, and the end-of-day breakdown set in motion today’s gap and downtrend continuation environment.

Price shattered the 2,000 index target, rallying initially higher – on positive divergences – at the 1,990 level.

It’s this level that we’ll once again focus on today – balancing the odds of a “bounce” rally (if above 2,000) or a continuation of this sell-off into a collapse environment (if under 1,990 and 1,980).

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

Like yesterday, we’re still seeing a strong confirmation of the bearish price action in the index as the market experiences a deep correction.

Utilities – along with Energy – top the market as the strongest Sector, but that’s only with 25% of stocks positive.

The bigger picture is that all sectors are extremely bearish and few stocks at all – 10% of the S&P 500 and 7% of the Dow Jones – are positive during today’s session.

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

NONE.  NO stock meets our criterion to be included today.

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

Deere & Co (DE), Ross Stores (ROST), Valero Energy (VLO), and Wells Fargo (WFC)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Aug 21 Steep Selloff Market Update and Stock Scan”

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