Bearish Break Market Update and Stock Scan May 17

May 17, 2016: 2:12 PM CST

The S&P 500 reversed down from the 2,070 level on clear negative divergences all the way back to our pivot support target near 2,040.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

As we saw from this morning’s post and the prior planning in the membership, price successfully rallied up away from the 2,040 pivot (on massive positive divergences) toward upper targets into 2,070.

Negative divergences late Monday undercut the rally into resistance and sent the market lower – all the way back to the 2,040 pivot bounce point.

We’re carefully focusing our attention on 2,040 and 2,045, knowing that a failure-to-bounce again here opens up a potentially rapid sell-pathway lower to 2,020 or 2,000.

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

Energy is the strongest sector today by far as Crude Oil blasts strongly higher again.

All other sectors are weak today and beneath the 40% Positive Breadth Level.

We’re seeing across-the-board selling pressure (except of course in Energy).

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

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

Vodafone (VOD), Methanex (MEOH), United Rentals (URI), and Diamond Resorts (DRII)

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

Campbell Soup (CPB), GrubHub (GRUB), Conagra (CAG), and Tata Motors (TTM)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Bearish Break Market Update and Stock Scan May 17”

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