Bouncing Range Market Update and Scan for Oct 20
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).
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
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).
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