July 7 Bear Trap Reversal Market Update and Stock Scan

Bycjrosen

Buyers won’t let the market roll-over, as proven with today’s power-buy rally off a support level.

What’s going on now and what levels are important? Let’s see:

In this morning’s TradeStation Morning Market briefing, I highlighted the likely price movement down toward the 2,040 level which is the rising 50 week EMA (and lower Bollinger Band).

Buyers responded with an intervention event, thrusting the market like a rocket ship up away from this level in yet another powerful V-Spike Intraday Reversals.

Nonetheless, price reversed with confirmation in TICK (internals) and Momentum, and now higher prices are favored after the false break or Bear Trap outcome this morning.

Follow along with members for more precise planning, analysis, and education.

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

The chart above was taken prior to the close and it reflects across-the-board bullishness today.

All sectors are above their 60% Breadth level while Staples and Utilities near 100% (all stocks positive).

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

DepotMed (DEPO), PPL Corp, American Electric (AEP), and Kohl’s (KSS)

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

HomeAway (AWAY), Tesla Motors (TSLA), Comerica (CMA), and Tata Motors (TTM)

Afraid to Trade Premium Content and Membership

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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).

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2 Comments

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