Jan 5 Stable Market Update and Stock Scan

Jan 5, 2016: 1:33 PM CST

The situation stabilized this morning as price reached equilibrium and initially bounced from yesterday’s collapse.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

Take a moment to review the morning post for additional level and target (trade) planning for the S&P 500.

A logical bounce took price into the 2,021 target level (today’s high so far) and negative divergences (TICK) failed to confirm the morning high.

Stocks fell from resistance (with divergences) in today’s Range Day development so far.

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

Despite the relatively weak (bearish) price action, sector strength is stronger than price suggests.

Our top sector is Utilities with almost all stocks positive, followed by the two defensive groups Staples and Health Care.

Energy – yesterday’s strongest – is today’s weakest group as all other sectors cluster near the 35% level.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Fairchild (FCS), Spirit Airlines (SAVE), First Solar (FSLR), and Wal-Mart (WMT)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Realogy (RLGY), ARM Holdings, AutoNation (AN), and NetApp (NTAP)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Jan 5 Stable Market Update and Stock Scan”

  1. Marsh Says:

    Sometimes this is such a good opportunity to collect decent amount, but of course we need to be careful of not going against the trend or it can make things very ugly. I usually keep myself safe with strict money management, stop loss and most important cash back service, it is provided by OctaFX and with that I can be aggressive yet be safe, it is not something that too many people can do especially in risky market situation in solid trend.