Big Rally Market Update and Trending Stock Scan March 16

Mar 16, 2015: 12:44 PM CST

Counting today, the last four trading sessions have reversed off clear divergences, and today’s session is just a continuation of this powerful pattern.

Divergences can be extremely important in planning and trading intraday market reversals.

Let’s update our key levels, highlight the divergence, and of course note trending stocks today:

Review a few posts from last week, paying specific attention to the divergences and (now) outcomes.

First, review Wednesday’s mid-day update for a real-time glance at the lengthy positive divergence at support and note the strong rally (here’s Thursday’s intraday update).

Also see Friday’s update for a clearer discussion of the “divergence into reversal” concept.

Members also had a deeper discussion of targets, inflection points, and likely price pathways that have been achieved over the last few sessions.

At this point, we’re following price into the 2,075/2,080 cluster as we see another negative divergence undercut the rally.

Will buyers shake up the market and break powerfully through 2,080?  If so, target a movement above 2,100.

Otherwise, if recent history repeats, the 2,075/2,080 cluster will be another resistance line ahead of a possible sell-signal under 2,070.

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

All sectors are positive today, though Energy and Materials are showing relative weakness today.

There’s little distinction among leading sectors, which just means money flow is strong into the market.

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

Amgen (AMGN), Edwards Lifesciences (EW), Sanofi Aventis (SNY), and United Therapeutics (UTHR)

Potential downtrending candidates exist in stocks showing relative weakness today:

Vector Group (VGR), Netflix (NFLX), Boise Cascade (BCC), Owens Corning (OC).

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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).

1 Comment

One Response to “Big Rally Market Update and Trending Stock Scan March 16”

  1. Rauf Says:

    Just love to get these updates because they give me a chance to be successful otherwise trading without having major update can lead into bad trades and that will destroy any newbie so that’s why having idea of the possible scenario I can trade according to that while I anyway trade long term all thanks to OctaFX broker which has swap free option so I can keep my trades on as long as I wish yet I don’t need to pay any fees.