Fed Day Market Update and Stock Scan Sept 17

Bycjrosen

After yesterday’s strength, we have today’s retracement of the bullish reversal.

Though price pushed to new highs, it was on negative divergences and we’ve seen downside action so far this morning.

The afternoon gives us a “Fed Day Announcement” which could radically change the structure, but first, let’s update our S&P 500 chart then highlight the top trending stocks of the day.

Positive Divergences suggested a bullish reversal which occurred this week.  Now negative divergences at a new high similarly argue for caution.

We’ll use 2,000 as a simple reference level and will play cautiously/bearishly beneath it and otherwise bullish – throwing caution to the wind – above.

Again, the “Fed Day” announcement and press conference begin at 2:00pm EST so read the statement and monitor the often volatile price action that develops  into the close.

Not surprisingly, Sector Breadth is Mixed:

Our top two sectors are Financials and Industrials (with strength in the other offensive names) which is actually bullish and our weakest sectors are Energy and Staples (which is also net bullish).

Not to be outdone, Utilities join with the bullish sectors.  This isn’t a pure bullish picture but it’s slightly more bullish than bearish at the moment ahead of the Fed announcement.

Potential bullish trend day continuation (buy retracements) stocks include the following:

Dupont Denemours (DD), Nucor (NUE), C.H. Robinson (CHRW), and Whole Foods (WFM).

Today’s downtrending stock scan includes the following bearish candidates today:

Owens-Illinois (OI), General Mills (GIS), FMC, Conagra Foods (CAG).

Afraid to Trade Premium Content and Membership

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).

Similar Posts

|

What Strength in Retail Hints about the Broader Stock Market

Bycjrosen

In case you missed it, many Retail and Consumer Discretionary stocks have been breaking either to new 52-week highs or new all-time highs and we continue to see strength in the related ETFs. Let’s take a look at the breakouts in the Retail ETF (XRT), broader Consumer Discretionary Sector (XLY) and ponder what that suggests…

|

Current Intermarket Volatility Band Reference Charts

Bycjrosen

Following up with the Inter-market charts at the beginning of November, let’s take it a step further and quantitify the levels of volatility – using Standard Deviation Bands – of the S&P 500, Gold, Oil, and US Dollar Index. Let’s start with the S&P 500 Standard Deviation Band Chart: First, a little explanation about what…