Corey’s February 5 Trend Day Market Update and Stock Scan

Feb 5, 2016: 3:35 PM CST

Tech stocks lead the market lower and there are some surprising drops in major names.

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

I highlighted the Negative Divergence and Bull Trap for you (and members) yesterday morning and indeed the trap scenario was accurate.

Buyers pushed the index above 1,920 but on weaker momentum, volume, and internals and we’re seeing the expected reversal on the “failure to break higher” (aka “Bull Trap”).

Price broke initially under the 1,900 key support level and then developed a Trend Day down, somewhat similar to what we saw on Wednesday.

We’re back to our 1,875 pivot as I highlighted this morning (and of course in more detail to members).

Receive daily updates, planning, and education by joining the Afraid to Trade Premium Membership.

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

Despite the bull trap, the Sector Rotation Money Flow data are positive.

The strongest sectors today are the Defensive Groups – Staples and Utilities.

No other sector breaks above the 30% positive level – a testament to the power of today’s session.

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:

Genpact (G), Tyson (TSN), Post Holdings (POST), and Estee Lauder (EL)

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

LinkedIn (LNKD), Tableau (DATA), Splunk (SPLK), and Starbucks (SBUX)

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership 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).

Comments Off on Corey’s February 5 Trend Day Market Update and Stock Scan

Comments are closed.