Fed Day Market Update and Stock Scan Jan 28

Jan 28, 2015: 2:33 PM CST

With the Federal Reserve’s announcement just behind us, let’s update our levels in the aftermath and highlight our top trending stock opportunities of the day (some from earnings announcements).

We’ll start with the ongoing triangle in the S&P 500:

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.”

The main idea is that the market structure is consolidating between compressing trendlines.

In simpler terms, look to play price swings up and down within this range as the market plays “Ping-Pong.”

The midpoint is roughly where price trades currently – the 2,030 level.

A further breakdown or movement away from the 2,030 level suggests price could again target the 2,000 line.

Like price, Breadth is Mixed:

There’s no major signal from Breadth at the moment, except that Energy continues to underperform.

All sectors except Financials and Materials trade near the 50% or “half-way” Breadth line.

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

Electronic Arts (EA), Freescale (FSL), Boeing (BA), and US Steel (X)

Potential downtrending candidates exist in stocks showing relative weakness today:

Core Labs (CLB), VMWare (VMW), Murphy Oil (MUR) and National Oilwell (NOV).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Fed Day Market Update and Stock Scan Jan 28”

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