Downtrending Collapse Market Update and Daily Stock Scan

Aug 20, 2015: 3:05 PM CST

Stocks continued the bearish action, breaking away from the midpoint level of 2,100 toward the 2,045 target.

What levels are we focusing on now amid this large trend day? Let’s see!

We have an update THIS Monday of more of the same: “Yes, We’re STILL In the Trading Range.

The S&P 500 is testing the lower bound of the final shelf of support – it’s hanging at the “Edge of the Cliff.”

Also, take a moment to review the prior “What Two Breadth Charts are Saying about the S&P 500.”

Here’s a hint – it’s bearish (putting today’s strong sell-session in context of the broader picture of deterioration)

At this point, we need to focus on the 2,045 (and now 2,040) level for either another miraculous bullish recovery and intervention to boost price once again off support… or the “this time it’s different” which would continue this retracement lower toward 2,000 or 1,980.

Follow along with members for more precise daily planning, analysis, and education.

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

The chart above shows one of the most bearish perspectives on Sector Breath that can exist.

All sectors are near the 5% to 10% range, which means 5% to 10% of stocks in the sector are positive.

The two outliers are the Defensive Groups of Staples and Utilities as shown – these sectors tend to outperform when the broader market is declining (as we’re seeing today).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Keysight Tech (KEYS), L Brands (LB), Rangold (GOLD), and Eli Lilly (LLY)

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

21st Century Fox (FOXA), Netflix (NFLX), IMAX, and Sinclair Broadcasting (SBGI)

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).

1 Comment

One Response to “Downtrending Collapse Market Update and Daily Stock Scan”

  1. Abdul Says:

    These days it’s too quickly we are watching the trend turning on it’s head, so that’s why we need to be extremely careful of whatever we do, it’s just one mistake that can sound disaster, so that’s why we need to find way to be successful, if we don’t adopt to these things quickly then we could be in for long haul with trouble. I am careful and that’s why with OctaFX broker, I am able to do things well with their low spread of 0.2 pips for all major pairs.