Bounce Continues for April 9 Sector Breadth and Trending Stock Update

Apr 9, 2014: 12:20 PM CST

Well that was a relief!  Price continued to rally up off the key support level and parallel trendline structure (see yesterday’s Triple Index Update for key reference levels) and we’re seeing a return to short-term bullish money flow.

Let’s start with our current mid-day S&P 500 Sector Breadth Chart:

Unlike yesterday’s clear bearish sector money flow, we’re seeing reversal where strength is concentrated in Materials ($XLB) and Industrials ($XLI).

In the Materials sector, Allegheny Technologies (ATI) and Alcoa (AA) top the list.

For Industrials, Raytheon (RTN), Delta Airlines (DAL), Parker-Hannifin (PH), and Southwest Airlines (LUV) compete for the top spot.

Now, let’s turn to our potential trend day continuation candidates:

AutoNation (AN), Merck (MRK), previously mentioned Allegheny Tech (ATI) and Travelers (TRV) top the scan.

For our downtrending candidates, Lorrilard (LO), Kraft Foods (KFT), Diamond Offshore (DO), and Hershey (HSY – which was an intraday downtrender yesterday) rise to the top of the “downtrending” stock scan.

As always, monitor sector breadth with intraday trend and the potential for these stocks to continue their current trends, or reverse them (depending on the type of strategy you prefer as a trader).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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