Cinco de Mayo Intraday Trading Update and Stock Scan

May 5, 2014: 12:34 PM CST

Happy Cinco de Mayo!

Let’s jump straight into our active intraday trading update at the middle of the trading day.

We’ll start with the festive reversal from session lows on the S&P 500 (and note current levels):

Today’s already seen a wild trading day in motion.

We note the power-gap down to the 1,870 level ahead of a Stick-Save reversal that thrust price back to – then above – the opening price and key reference level near 1,880.

Price formed a range between 1,881 and 1,883 (note the highlight), stalled, and then traded down against 1,883.  Note the lengthy (intraday) negative dual divergence in both Momentum and the NYSE TICK Market Internal.

Divergences in internals often strongly suggest – but do not guarantee – an upcoming price reversal.

As we freeze the picture mid-day, we note a Bearish backdrop for Sector Breadth:

Unlike the last few bullish sessions, we now see clear Bearish Sector Breadth – strength at the moment is concentrated in the Defensive Sectors such as Health Care ($XLV) and Utilities ($XLU).

The only other highlight is the Materials Sector where almost 60% of stocks (in the S&P 500) are positive on the session.

We see weakness across the board where most sectors record values under 40% positive.

Moving on, let’s take a look at our Trending Stock Candidates for the day:

Chipotle Mexican Grill breaks out above $500 (CMG), Perkinelmer Inc (PKI), ADT Corp (ADT), and Boston Scientific (BSX) provide possible bullish trend day continuation candidates.

Finally, our downtrending stock candidate list includes Robert Half (RHI), Tyson Foods (TSN), J.P. Morgan (JPM), and Whole Foods Market (WFM).

Continue wathcing the S&P 500 for signs of additional downside action away from 1,880 and be safe.

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Corey Rosenbloom, CMT
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