Big V-Spike Intraday Reversal and High Activity Stock Scan April 28

Bycjrosen

In case you were becoming bored with the market, price threw us an exciting curve ball in the form of a V-Spike Intraday Reversal.

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

After Monday’s failure – Bull Trap – at the highs, price collapsed toward the first lower target near 2,100.

This morning saw additional sharp selling action be thwarted with a huge bullish inflow that twisted the market violently higher in a classic V-Spike Intraday Reversal.

Price reversed the intraday downtrend into a new sudden uptrend with the re-break above the 2,110 level.

The focal point today will be the 2,115 and 2,110 intraday pivots.

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

Today’s strongest sector is the defensive Utilities group followed by bullish Financials and Technology.

Were it not for strength in Utilities, we would declare today’s session bullish via Sector Strength but alas, that’s not what we’re seeing.

As a group, the Defensive Sectors (Staples, Health Care, and Utilities) are collectively stronger than the offensive names which include weak sectors Discretionary and Materials today.

Be sure to reference the earlier post “What Sector Rotation is Saying so far in 2015” for background and an updated Sector Performance grid on a larger scale.

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

Cal-Maine Foods (CALM), Korea Electric (KEP), AT&T (T), and IBM

If you’re must be a bear on a bullish day, you can try these bearish/weak names:

Honda Motors (HMC), CIT Group, Coach (COH), and Digital Realty (DLR)

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