Big Bullish Reversal Intraday Update and Stock Scan Oct 3

Oct 3, 2014: 2:15 PM CST

Finally the bulls made their strike – they were ready to pounce after a series of sell-days struck the market.

Today’s session was a powerful reversal with bullish action virtually across the board.

Let’s start with our S&P 500 Chart and highlight the top trending stocks of the day:

Before we discuss today’s session, let’s take a quick look at a chart I posted for members last night (here is how to become a member of our daily and weekly commentary):

I posted this chart last night as part of our game-planning section to highlight the lengthy dual positive divergences in the Momentum Oscillator and NYSE Market Breadth.

The quick takeaway is that price favored a reaction or impulse UP off the V-Spike Reversal level which set the stage for today’s breakaway upward rally.

The target point was into the yellow highlight as drawn, which is exactly where price trades at the moment.

Keep in mind that we’re seeing the @ES futures contract along with the S&P 500 “SPY” ETF and the exact price levels are slightly different yet the structure is the same.

We reference th3 50% Fibonacci Level and the ‘value’ area near the $197 (1,970) level as our focal point for today’s session – it has already been achieved.

A further push or breakout beyond $197 sets in motion a potential play toward the 61.8% Level just above $198 (1,980).

After an almost “Most Bearish Breadth Possible” chart Tuesday, we’re now seeing across the board bullishness:

All sectors except Materials and Energy trade near 100% perfection (where almost all stocks in the S&P 500 sector are positive at the moment).  In fact, Staples, Health-Care and (almost) Financials receive A+ ratings where all stocks are positive right now.

This means we can focus on pro-trending bullish names, including these from our scan:

Goldman Sachs (GS), Kansas City Southern (KSU), Alexion (ALXN), and Snapple (DPS).

Finally, bearish downtrend continuation candidates include these stocks:

None!

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Corey Rosenbloom, CMT
Afraid to Trade.com

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