August 26 Bouncing Market Update and Big Stock Scan

Aug 26, 2015: 2:11 PM CST

Eventually this market has to rally, right?  We’ll see – continue focusing on our key price levels.

And what levels are we focusing on now within the high volatility? Let’s chart them now:

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

Price has stabilized into a sideways trading range – taking the shape of an intraday Triangle – after the sell-off.

We continue to focus our attention on the 1,880 key pivot support level (four support examples) as well as the declining upper resistance trendline heading toward 1,900.

For now, price is above the upper trendline and failing into the 1,915 level which will be our pivot.

Market Internals (TICK) is strong going into the current resistance level so any firm movement up above 1,920 could be an impulse (aggressive) breakout buy signal.

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

Like yesterday afternoon (but NOT like yesterday’s close), Breadth is strong across the board.

Once again, Utilities are the weakest sector with all other sectors nearing their 100% “all stocks positive” breadth levels.

As long as money flow continues to be this strong in the sectors, we’ll expect the broader market to react higher.

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

Cameron (CAM), Eagle Pharma (EGRX), Nimble Storage (NMBL), and Taser (TASR)

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

Qihoo 360 (QIHU), VM Ware (VMW), Grub Hub (GRUB) and Schlumberger (SLB)

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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).

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One Response to “August 26 Bouncing Market Update and Big Stock Scan”

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