Bull Trap Reversal Market Update and Stock Scan Dec 2

Dec 2, 2015: 2:47 PM CST

Stocks triggered a Bull Trap Reversal this morning as internals diverged lower from price.

The result was an intraday collapse away from the key 2,100 level.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

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Yesterday’s surprisingly strong rally gave way to an equally strong bearish reversal today.

Note the initial movement up above the 2,100 target and the negative divergences earlier this morning.

The result was a reversal and then collapse of the market – we’re currently seeing the 20 point collapse now.

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

The snap-shot of Sector Strength shows massive weakness as the S&P 500 tests session lows.

The strongest sector – as if 25% of stocks positive is strong – is the defensive Staples group.

All others are showing weakness and near zero stocks positive in each sector, as we’ll soon see.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Qualcomm Inc (QCOM), Yahoo! YHOO, Wayfair (W), and First Solar (FSLR)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Kansas City (KSU), Sony Corp (SNE), CH Robinson (CHRW), and Viacom (VIAB)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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  1. Stocks Trigger a Bull Trap Reversal on Wednesday Says:

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