Feb 25 Continuation Market Update and Stock Scan

So far, today’s session followed the “opening gap weakness, intervention bullish strength rally later” pattern.

The trigger-break above 2,110 caused bulls to become more aggressive as sellers triggered stop-losses again.

We’ll update our key simple levels and note trending stocks today:

The breakout above 2,100 resulted in a short-squeeze where bears (short-sellers) unwillingly helped propel the market higher as they covered their losses with stops triggered above 2,100.

Yesterday’s session closed at the high, though this morning saw a retracement back to the 2,112 pivot level.

I wanted to highlight the simple retracement patterns that continue to be effective for short-term traders to pinpoint entries into this short-squeezed rally.

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

Today’s session gives a muted bullish signal in our Breadth Chart.

All sectors are near the 50% Breadth Level, except Consumer Discretionary (the strongest) and Utilities (weakest).

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

Verisk (VRSK), Nike (NKE), Markwest Energy (MWE), and Newfield Exploration (NFX)

Potential downtrending candidates exist in stocks showing relative weakness today:

Lumber Liquidators (LL), Hewlett-Packard (HPQ), Green Plains (GPRE), and YY

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).