June 12 Sell Swing Market Update and Stock Scan

Jun 12, 2015: 1:52 PM CST

Divergences yesterday gave way to a short-term reversal and sell-swing breakdown today.

What levels are important now after the breakdown under 2,100? Let’s see!

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

Follow-that up with this morning’s “More Divergences and Level Planning” update.

With those firmly in mind, price broke under the 2,110 level to begin today’s Trend Day down.

Pay close attention to the message of market internal and momentum divergences.

For now, price stabilized at the 2,095 level and we’re seeing a breakdown toward 2,090 which is our reference.

Should price push to new session lows, it would likely continue lower under 2,090 in a Trend Day movement.

Otherwise, look to be cautious at current levels with respect to a slight pick-up in volatility.

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

While Breadth yesterday was strong – with a hint of bearishness – today’s breadth is weak with an ever so small hint of bullishness.

The strongest sector is Consumer Discretionary with 25% of stocks positive right now.

Otherwise we have across-the-board bearish/liquidation money flow.

The hint of bullishness – besides Discretionary – is that the weakest sectors are the defensive names.

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

United Rentals (URI), Cheetah Mobile (CMCM), Zumiez (ZUMZ), and YY.

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

Albemarle (ALB), Linear Tech (LLTC), Merck (MRK), and Aetna (AET)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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