July 22 Midday Trend Day Update and Trending Stock Scan

Jul 22, 2014: 12:23 PM CST

How high can this market bounce?

Let’s take a look at our new S&P 500 planning chart, highlight the message from Sector Breadth, and conclude with today’s Trending Stock candidates in this afternoon’s intraday update.

Let’s start with our S&P 500 Planning Chart:

Yesterday’s V-Spike Reversal session off the 1,970 midpoint (see yesterday’s update for a Fibonacci Level Planning Grid) took us straight up to the prior high near 1,985.

We’re seeing at least a temporary stall or pullback take place into the resistance created by the prior high which makes planning the rest of the day simple:

Expect a continuation of the breakout and “Short Squeeze” impulse should we see more upside action (“that which is extended can become more over-extended”) but otherwise be cautious/bearish short-term into the resistance of the 1,985 inflection level.

Also like prior recent sessions, Sector Breadth paints a mixed picture:

We actually see a slight Bullish tilt to the Sector Rotation Chart (as would be expected) given that the strongest sectors are Technology, Industrials, and Energy but look closely to see that Health Care is our Sector Leader (breadth) of the day.

It would be more bullish if Health Care joined its fellow Risk-Off (defensive) sectors of Staples and Utilities for Relative Weakness today but that’s not the case.

Now, let’s shift our attention to bullish-trending stocks for potential buy-trades the rest of the day:

Gappers Apache Corp (APA), Chipotle (CMG), Wynn Resorts (WYNN), and Goldman Sachs (GS) top the list.

Bearish potential trend day continuity stocks include the following candidates:

Netflix (NFLX), International Paper (IP), Rockwell Collins (COL), and gapper Harley Davidson (HOG) are bearish today.

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).

Comments Off on July 22 Midday Trend Day Update and Trending Stock Scan

Comments are closed.