December 1 Update and Stock Scan from Pullback

Dec 1, 2014: 1:42 PM CST

Finally, bears get the pullback they’ve been eager to see.

The question is, how low will price go and when will buyers step back in?  See this morning’s post for key target levels to “plan the pullback.”

Let’s update our mid-day information and highlight our trending stock candidates for today’s session.

Would you believe me if I told you that the 2,050 level may be all the bulls give up?  It’s possible, but unlikely.

We’re seeing an intraday bullish reversal and strength flood back into the market off the 2,050 target level.

Keep in mind that 2,040 is a daily chart moving average target, along with prior lows from mid-November.

Note the green bullish (above 2,050) and red bearish (under 2,050) zones to plan trades as they develop in real-time.

Sector Breadth confirms the Bearish sell-off:

Our strongest sector of the day is Utilities, followed by the other two “Defensive” or Risk-Off sectors of Health Care and Staples.

All other sectors – the bullish ones – are trading beneath the 30% positive level – that’s bearish.

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

Iron Mountain (IRM), Lions Gate E (LGF), Habit Restaurants (HABT), and Southern Company (SO).

Potential downtrending candidates exist in stocks showing relative weakness today:

Yahoo! (YHOO), Splunk (SPLK), Honeywell Inc (HON), and high-flyer Alibaba (BABA).

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Corey Rosenbloom, CMT
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