June 11 Consolidation Market Update and Big Stock Scan

Jun 11, 2015: 12:46 PM CST

Yesterday’s session was a huge – expected – bullish surge (reversal) off support.

Today’s session continued the bullish dominance early in the day, yet price balanced into a range mid-day.

What levels are important now?  Let’s see!

Be sure to reference yesterday morning’s “Trading the Expected Rally (Reversal) off Support.

In that reference post, we document quickly what factors strongly favored a reversal – and price behaved.

With the impulse toward – then above – 2,100, we see price stalling into the 2,115 midpoint target.

At this point, we’re intraday neutral/bullish off 2,110, breakout bullish above 2,115, and cautious under 2,110.

Note the lengthy positive divergences and kick-off signals that forecast the breakout reversal.

Of course, it wouldn’t be as fun if price didn’t trick and trap traders with a false break under 2,080.

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

Breadth today is strong, yet Energy is the weakest sector.

Strangely, the strongest sectors are the defensive names Health Care and Utilities – not very bullish.

The Offensive Sectors are clustered near the 65% Breadth level showing progress.

We’ll rate this as a bullish signal, but it’s not the most bullish confirmation possible today.

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

Gap (GPS), Axis (AXS), Citrix (CTXS), and Airgas (ARG)

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

Criteo (CRTO), BCE, 58.com (WUBA – back on the list), and Diamond Offshore Drilling (DO)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “June 11 Consolidation Market Update and Big Stock Scan”

  1. Noman Says:

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