Aug 28 Sideways Market Update and Stock Scan
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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Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
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).
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