July 22 Market Update AAPL Gap and Daily Stock Scan

Jul 22, 2015: 2:04 PM CST

So far, we’re seeing a repeat of yesterday’s morning weakness, afternoon stability, and rally into the close.

Let’s scratch the surface and look beyond the headlines to what’s trending today:

Apple (AAPL) was the big headline news item today with a large downside gap into support.

Nonetheless, the broader market continued its logical sell-swing retracement (see yesterday’s morning update) toward the current 2,110 index level.

Like yesterday afternoon, we’re seeing positive divergences into this level ahead of potential afternoon strength.

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

While yesterday’s Breadth Chart took a clear bearish tone, today’s update is actually part-bullish.

First, the bad news is that strength is clearly concentrated in the “weakness” or “defensive” names of Staples, Health Care, and Utilities.

In fact, almost every single Utilities Sector stock is positive right now – stellar for today’s action.

The good news is that bullish sectors Financials and Discretionary also show strength.

All other sectors are beneath the 50% line – negative breadth for the session.

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

Realogy (RLGY), Jack in the Box (JACK), Brinker Int’l (EAT), and CitiGroup (C)

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

FMC Tech (FTI), Tyco again (TYC), headline driver Apple (AAPL), and ARM Holdings (ARMH).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Responses to “July 22 Market Update AAPL Gap and Daily Stock Scan”

  1. Ayesha Says:

    It’s important to go with trend since if we make even a small mistake, it can create huge trouble. I am lucky that I have got high class broker like OctaFX, it’s one of the greatest company there is with having 11 awards in just 4 years which really help us a lot to trade better and also have wonderful payment system where I get all my payments instantly without having to face any trouble at all while there is no extra fees at all.

  2. Maddy Says:

    The trend definitely looks bullish, but having enough experience, I can say it can have a turn over any time, so that’s what we need to be very careful about, it’s just one mistake enough to doom the situation, I am fairly lucky that i work with OctaFX broker where I get plenty of support especially with their daily analysis option, it is easy to get follow this daily and really helps working in this market, so that’s why I always prefer it.