Feb 11 Range Reversal Market Update and Stock Scan

Feb 11, 2015: 3:31 PM CST

Markets STILL are never boring! Today’s action again reminds us of that fact.

A rangebound morning devolved into a breakdown, and the sell-off was halted from an intervention buy event from the buyers.

Let’s update our key levels, highlight the divergence, and of course note trending stocks today:

Price logically moved down away from 2,070 as would be expected (from the divergences) but as the sell-off began to intensify, buyers collectively stopped it in its tracks, intervening to trigger a short-squeeze rally almost all the way back to session highs.

We’ll continue to use 2,000 and 2,060 as short-term pivots in the context of a broader trading range (see the prior update on the current range and breakout targeting for the S&P 500).

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

With today’s semi-range session, Breadth sends a muted or neutral signal with almost all sectors at the 50% Breadth Line.

Energy and Utilities are the relative strength laggards (weakest sectors) today.  Zero Utility stocks are positive right now.

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

Service Corp (SCI), SK Telecom (SKM), big Apple (AAPL), and Altria (MO).

Potential downtrending candidates exist in stocks showing relative weakness today:

Tanger (SKT), AT&T (T), Sysco (SYY), Pinnacle Foods (PF)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Feb 11 Range Reversal Market Update and Stock Scan”

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