June 11 Breakdown Sell Day Stock Scan and Update

Jun 11, 2014: 1:22 PM CST

We’re finally seeing some downside action!

I was beginning to think that the market could only go higher but today returns us to a bit of normalcy.

As I mentioned in yesterday’s mid-day update, any breakdown of the “Magnet” area near 1,947 would trigger a short-sell bias and we’re seeing not just the initial breakdown from the opening gap, but a bear flag and new lows being made right now for our midday update:

Price topped (short-term) with divergences into 1,955 and has traded down away from this level ever since, breaking a stellar streak of consistent upside (bullish) closes.

Nevertheless, we turn our attention to the sell side as price retraces or corrects down away from resistance and starts to break new support levels (the first was 1,947 and the next is the 1,940 round number level).

A “Rounded Reversal” or mirror image reversal opens a target play toward the 1,925/1,930 levels.

Sector Breadth reveals a clear bearish confirmation picture:

Our strongest sectors are the Energy and Health Care sectors, even though “only” 35% of stocks in these sectors are positive on today’s session.

Most sectors are showing positive performance around 15% on a day that 90% of Dow Jones and 82% of S&P 500 stocks are negative right now.

As long as the selling pressure continues, focus your attention on trending stocks:

H&R Block (HRB), Anadarko (APC), WellPoint (WLP), and Merck (MRK).

Focus your attention (intraday stock candidates) on sell/bear trending stocks:

Capital One (COF), Boeing (BA), Lennar (LEN) and Macy’s (M).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “June 11 Breakdown Sell Day Stock Scan and Update”

  1. Normalcy Returns to the Market Says:

    […] The trigger break preceded yesterday’s trend day and it set the stage for the continuation of the selling pressure into today’s session as we target the 1,930 level for a full “Mirror Image” retracement potential play (seeWednesday’s update for more information on targeting). […]