Bullish Breakout Stock Scan and Market Update Jan 8

Jan 8, 2015: 2:42 PM CST

This morning’s breakout above the market resistance level triggered a wave of buying – both from bulls but also from bears, rapidly buying to cover losses from misplaced short-sold positions.

Let’s update our chart and highlight the top trending stocks of today.

As I highlighted to members, the “Rounded Reversal” on January 6th set the stage for a bullish retracement/bounce, and the trigger bullish play was to occur on the breakthrough above the 2,030 level.

That’s precisely what occurred on the resistance shatter and we see a powerful trend day into the next upper resistance target – the 2,060 level – today.

We shift our focus to the 2,060/2,065 target for our pivot plans and short-term strategies.

How bullish is today’s Sector action?  Funny you should ask:

This isn’t the most bullish sector strength chart, but it’s close.

All sectors are showing strong breadth today with the Consumer Discretionary the “weakest” (can we use that word here?) of today’s sectors with an 84% Breadth reading.

Otherwise, it’s bullish across the board.

We have potential bullish trend continuation plays in the following strong intraday stocks:

MeadWestvaco (MWV), Avery Dennison (AVY), Leucadia (LUK), and Freescale Semi (FSL).

Potential downtrending candidates exist in stocks showing relative weakness today:

ZERO

There are no stocks that are fulfilling our bearish pattern used in the stock scan algorithm today.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Bullish Breakout Stock Scan and Market Update Jan 8”

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