Bouncing Range Market Update and Scan for Oct 20

Oct 20, 2014: 1:06 PM CST

With a narrow bounce continuing to drive the market into a known resistance cluster, let’s view the key levels, highlight the trending stock candidates, and update our S&P 500 chart as we start the week of October 20th.

Here’s our S&P 500 update and trending stock scan for the day:

Again we watch the 1,900 confluence which represents a “Round Number” level with the 38.2% Fibonacci Retracement as drawn, along with the important 200 day Simple Moving Average near 1,905.

The market is simply “Breakout Bullish” to reverse the intraday downtrend via V-Spike Intervention Reversal or else bearish into resistance should price instead move down against the 1,900 cluster.

Sector Breadth is Bullish at the moment with clear caution signs:

We continue the theme of “almost all sectors are performing similarly” with most S&P 500 sectors returning Breadth readings near 80%.

However, the strongest cluster appears to be the Staples and Utilities – Defensive names – and the weakest is the Industrial sector.

Keep your eye on the relative performance (strength at the moment) of the Defensive/Risk-Off names.

We finally have uptrending bullish intraday candidates today:

Cigna (CI), Trip Advisor (TRIP), Intuitive Surgical (ISRG), and Celgene (CELG).

Top bearish downtrending candidates include the following stocks:

IBM, Cognizant (CTSH), Hewlett-Packard (HPQ), and John Deere & Co (DE).

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One Response to “Bouncing Range Market Update and Scan for Oct 20”

  1. Up Up and Away Market Update and Stock Scan for Oct 21 | Afraid to Blog Says:

    […] morning’s gap triggered yet another Short-Squeeze Breakout outcome (see yesterday’s planning) and we continue to trade long with the buyers (and perversely, long with the bears/short-sellers […]