Big Bullish Surge off Support Market Update and Scan April 6

Apr 6, 2015: 12:14 PM CST

Markets are rarely boring, that’s for sure.

Stocks power-rallied off support this morning as a short-squeeze helped fuel price action higher.

Let’s dive inside action and note key levels and the trending stocks of the day:

Take a moment to review the prior two posts that set the stage for today’s bullish reversal:

Key Support Level Planning for April 1 (US Stock Market Indexes)

Two S&P 500 Triangles and Level Planning

We’re building off the following quotes/planning from the end of last week:

The Breadth Divergence does suggest the outcome here will likely be another bullish inflection up off the 2,045 target support level.

If so, continue playing long above 2,050 as bears “stop out” and buy-back to cover, joining with buyers/bulls, both of which will help push the indexes higher.

Price “should” move up off the 2,045 level – away from this trendline price support – and toward the 2,080 level again. That’s the clear, logical dominant thesis given the data we have right now.

Despite Friday’s futures market bearish action, buyers continued the bullish rally as short-sellers once again were stopped out, ironically fueling the market even higher.

View the prior posts for target planning within the triangle/rectangle pattern on the Daily Chart.

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

Bull, Bull, Bull.

Strangely, the weakest sector today is the Financial Sector (66% of stocks positive) while all other sectors are seeing ascending bullishness.

There’s not much to differentiate, which just means we should keep focusing on the buy-side.

We have potential bullish trend continuation plays in the following stocks from our scan:

Microsoft (MSFT), Chevron (CVX), Tesla (TSLA), Ventas (VTR).

Potential downtrending candidates exist in stocks showing relative weakness today:

NONE!  We don’t short in this type of bullish intraday market.

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Check out the details and start planning the trip today to join us in May.

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).

2 Comments

2 Responses to “Big Bullish Surge off Support Market Update and Scan April 6”

  1. Anderson Says:

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