July 28 Monday Midday Market Update and Stock Scan

Jul 28, 2014: 1:09 PM CST

It’s time to take a look at what’s happened this morning, what Breadth is saying, and which stocks are potential Trend Day candidates as we start this final week of July 2014.

We’ll start with the intraday update of the S&P 500:

We had a quick and volatile turn-around (reversal) up off the 1,970 index level as positive divergences AND a rising TICK Channel suggested the selling pressure may be coming to an end.

This was indeed the case as a violent reversal short-squeezed sellers out of the market after an initial price dip off the open.

Monitor price into the current 1,980 index level and horizontal rectangle area between 1,975 and 1,979.

Sector Breadth gives a slightly conflicting message at the moment (yet it’s mostly bullish):

First, notice the (slight) relative strength increasing in the Financials, Discretionary, Technology, and Materials sectors today.

This is a bullish sign that suggests broad support and bullish money flow into the stock market.

Temper that with the fact that 100% of S&P 500 Utilities stocks (31 stocks) are positive on today’s bearish-then-bullish session.

That’s something you don’t necessarily want to see if you are a bull/buyer.

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

Family Dollar (FDO), Roper Industries (ROP), Wynn Resorts (WYNN) and NetApp Inc (NTAP).

Bearish potential trend day continuity stocks include the following candidates:

Micron Technologies (MU)< Kansas City Southern (KSU), Cummins Inc (CMI), and Lennar Corp (LEN).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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