Breakdown Intraday Update and Stock Scanning to Start October

Oct 1, 2014: 1:09 PM CST

Today certainly won’t be remembered as an ordinary, average day!

At mid-day, stock prices are collapsing in a liquidation swing as sellers broke price under a key support level (opening the bearish pathway we see now).

Let’s update our S&P 500 chart and highlight the top trending stocks of the day as usual:

We saw a Fibonacci Retracement grid from our intraday planning from September 29th, and now we see price breaking the lows which opened up the Trend Day and liquidation swing we’re seeing now.

At this point, we’ll need to look to higher timeframe support levels due to price making new intraday lows in a clear downtrend on the lower frame charts.

A target point exists into the 1,945 level so we’ll be watching for any sort of intraday inflection up off this level.

If not, then we continue our bearish “trend day” strategies.

The chart below reflects one of the most bearish indications possible:

This is starting to get serious.  All sectors have collapsed with the exception of the defensive name Utilities.

Every single S&P 500 Utility Sector stock is positive at the moment at the same time when roughly 10% of stocks in all other sectors are positive.

This isn’t a time to call a bottom when we’re seeing such strong money flow into the defensive posture.

Aggressive traders can play bullish candidates (not everything is falling today):

NRG Energy, Exelon (EXC), Edison (EIX), and Duke Energy (DUK0.

Finally, bearish downtrend continuation candidates include these stocks:

Marriott (MAR), Sysco (SY), Johnson & Johnson (JNJ), and Carnival (CCL).

Be safe out there.

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Corey Rosenbloom, CMT
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