Aug 28 Sideways Market Update and Stock Scan

Aug 28, 2015: 2:09 PM CST

Yesterday’s relief rally stalled into overhead resistance at the 1,990 target level.

What levels are we focusing on now within the slightly lower volatility? Let’s chart them now:

It’s logical to expect a consolidation or pause as the market takes a breather after a huge impulsive rally.

This time, price stalled shy of the 2,000 “Round Number” index level and stalled into the 1,990 region.

Internals and Momentum declined during today’s consolidation as a new short-term intraday trading range has developed between 1,975 and 1,990.

Focus on these levels on the intraday basis and be ready to trade a breakout (up toward 2,000; or down to 1,950).

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

The prior two sessions saw amazingly strong breadth during market rallies.

Today crafts a muted, mixed picture of strength in Oil/Energy but weakness in Utilities and Financials.

All other sectors – except defensive Health Care – are near the 50% “midpoint” Breadth level.

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

Big Lots (BIG), Medicines (MDCO), Activision/Blizzard (ATVI), and Diamond Offshore (DO)

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

GameStop (GME), Autodesk (ADSK), Pepco (PEP), and Fitbit makes a return appearance (FIT)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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 “Aug 28 Sideways Market Update and Stock Scan”

  1. Tulsi Says:

    For me it’s always better to avoid sideway markets, but this can be a really decent chance for doing scalping, if we do it correctly then we can make serious level of profits. I am lucky to be working with OctaFX broker where they have rebate program, it helps me earn 15 dollars profits per lot size trade, but more importantly is a gap filler of danger, so I can be aggressive yet there is never any issue in how I work and that’s what makes me so much happy.