Feb 26 Market Can Actually Fall Update and Stock Scan

Feb 26, 2015: 2:37 PM CST

Can you believe the market can actually fall?  I didn’t either!

Nevertheless, today’s session is showing price weakness but buyers – so far – have again held up the market from falling sharply.

We’ll be watching for the remainder of today’s session if they’ll be successful, and thus adapting our trades.

Here’s the Structure and Planning Levels on the S&P 500 intraday:

Today’s session opened with a quick sell swing that – like many other days before it – saw a bullish intervention short-squeeze the market higher.

It would appear that the natural course of the market (short-term) is toward the downside, retracing the strong bullish movement.

Look for additional downside price action – and bearish trades to trigger – on a movement down under 2,105.

Otherwise, this market is amazingly short-squeeze intervention bullish above 2,115 (be prepared for unexpected outcomes).

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

Sector Breadth – like price – is mixed and a bit contradictory this afternoon.

The strongest sectors are under the 50% Breadth Line – which is bearish – yet the weakest sectors are Energy and Utilities.

The cluster of relative strength appears both in the offensive Technology/Materials group along with the defensive Staples/Health Care sectors.

Caution is the goal when a bull/bear signal (sector strength) isn’t abundantly clear.

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

Avago (AVGO), Carter’s (CRI), Western Refining (WNR), and Akorn (AKRX)

Potential downtrending candidates exist in stocks showing relative weakness today:

Taser (TASR), PVH, Nationstar (NSM), and Kinder Morgan (KMI)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Feb 26 Market Can Actually Fall Update and Stock Scan”

  1. Nawroz Says:

    Obviously in a way no one really thought it will fall but on other hand every decent trader is well aware that there can be any surprise so we should always be ready for it, hence I prefer trading on long term only because this way I can keep good money management and lower the risk while even if any unexpected situations happens I can tackle it. I usually work with OctaFX broker because of wonderful 50% bonus that gives double edge to my money management.