Corey’s Midday Market Update and Stock Scan Feb 4

Feb 4, 2016: 3:11 PM CST

Yesterday saw a bullish “surprise” reversal and today gives us the opposite – a bear trap and bearish reversal.

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

Price rallied up and reversed yesterday from a visual positive momentum and TICK (internal) divergence… and we see the bearish resolution from a failed breakout and bull trap off a negative momentum and TICK divergence.

Note the short-term Fibonacci planning levels between 1,900 and 1,920 – our operating pivots.

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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 – and they are strong – are the Offensive (green) groups.

The weakest are the Defensive/Protective (red) groups.  It does suggest additional bullish potential.

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:

Sally Beauty (SBH), Coty (COTY), Monsanto (MON), and Kansas City Southern (KSU)

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

Allied World (AWH), Kohl’s (KSS), Ralph Lauren (RL), and L Brands (LB)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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).

2 Comments

2 Responses to “Corey’s Midday Market Update and Stock Scan Feb 4”

  1. Corey’s February 5 Trend Day Market Update and Stock Scan | Afraid to Trade.com Blog Says:

    […] highlighted the Negative Divergence and Bull Trap for you (and members) yesterday morning and indeed the trap scenario was […]

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