Bearish Breadth and Price Collapse Stock Scan and Update for Sept 25

Sep 25, 2014: 1:02 PM CST

Look out below!  Price broke support and collapsed in a liquidation event today where the selling has (so far) been relentless.

We recorded perhaps our most bearish breadth chart since I’ve been keeping record of intraday sector breadth on the open blog.

Let’s see the current S&P 500, note ultra-bearish breadth, and then highlight our weakest stocks of the day:

Again view the two recent S&P 500 updates so far from the week:

Planning the Pullback in the US Stock Market

“Support Range Bounce for the S&P 500”

Price stalled this morning into the 2,000 target and began the session with a gap-down as bears became the aggressors and bulls accepted defeat through liquidation selling.

Price not only rapidly achieved the 1,980 prior low target, but broke it without stopping to achieve the 1,970 level where we see price trading currently.

This is not a day to call a bottom in the liquidation swing taking place – it’s a product of an overbought market with multiple divergences where the bearish resolution finally is taking place (stronger perhaps than expected).

The chart below reflects one of the most bearish indications possible:

Stealthily, the strongest sectors today are the defensive Staples and Health Care sectors (notice the weak performance from Energy and Utilities) while we see a strength cluster in the offensive group (Financials, Technology, etc).

So far, the message is mostly bullish but would be fully bullish were it not for the top performing Staples Sector today.

Only ONE stock qualifies for our “bullish trending stock” list and that’s AutoNation (AN).

For now, we’ll only focus on bearish sell (retracement) trending candidates today:

Keurig Green Mountain (GMCR), FMC, Legg Mason (LM), and CME Group (CME).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

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).

Comments Off on Bearish Breadth and Price Collapse Stock Scan and Update for Sept 25

Comments are closed.