July 7 Intraday Update Level Planning and Stock Scan

Jul 7, 2014: 12:42 PM CST

What levels are we watching at the moment and which stocks are setting up as potential Trend Day candidates?

Let’s start with our S&P 500 intraday level-watching chart:

SPX July 7

The S&P 500 traded down from just above the 1,980 level on TICK and momentum Divergences into the upper trendline of a rising pattern (see this morning’s update on “Color Structure and Planning the Next Swing”).

The intraday target near 1,975 has already been achieved and we’re looking for any sort of bounce-up (with positive divergences this time) off the potential support inflection target at today’s low.

The market is in the “green buy zone” above 1,976 and otherwise is in the “red sell zone” under 1,975.

Sector Breadth shows a very bearish picture at the moment:

A quick glance at today’s “bearish” Sector Breadth shows clear relative strength with the Utilities (77% of stocks positive right now) along with Consumer Staples (41% of stocks positive).

These “Defensive” sectors tend to outperform during bearish periods in the market and we’re seeing that same pattern develop today.

Let’s turn our attention now to potential bull-trending stocks (relative strength leaders) today:

Archer-Daniels-Midland (ADM), Apple (AAPL), Cognizant Tech (CTSH), and Boeing (BA).

Potential downtrending (trend day) candidates include the following:

Textron (TXT), Wynn Resorts (WYNN), Intuitive Surgical (ISRG), and Delta Airlines (DAL).

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Corey Rosenbloom, CMT
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