Feb 2 VSpike Market Update and Trending Stock Scan
Stocks continued their sell-swing, yet we’re seeing a similar intervention or V-Spike Pattern that played out last Thursday.
We’ll start with the ongoing intraday downtrend the S&P 500 and highlight our trending stocks:
For a broader discussion on this ongoing and important pattern, see my update post “Plotting the Current Range and Future Breakout for the S&P 500.”
We’re seeing a tepid downward break in price under the 2,000 level but we’ve also seen two intervention V-Spike Reversals under 2,000, threatening to spring a Bear Trap.
Nevertheless, the key focal point for traders will still be the 2,000 level and the bull/bear interaction here.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
We have potential bullish trend continuation plays in the following stocks from our scan:
Marathon Oil (MRO), Jacobs Engineering (JEC), Whiting (WLL), and Suncor (SU)
Potential downtrending candidates exist in stocks showing relative weakness today:
Qorvo (QRVO), Wyndham (WYN), Darden (DRI), and Pitney Bowes (PBI)
Follow along with members of the Daily Commentary and Idealized Trades summaries 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).
It’s slightly surprising to see such a strong uptrend especially given that we see Dollars getting rolling badly, I mostly prefer to trade on Dollar only and at the moment it looks very bad and mostly downtrend. I am into a long trade since last 4 months and lucky it has been right and I have made solid profits but I must give credit to my broker OctaFX, it is due to their swap free option that has allowed me to keep my trades on for so long without any charges.