June 17 Fed Day Market Update and Stock Scan

Jun 17, 2015: 1:45 PM CST

Fed Day!  Today we’re trading in a news-driven volatile environment as the Fed releases its forecasts.

We’re seeing the typical “Fed Day” pattern so let’s update our charts and be ready to react.

What levels are important now into 2,100? Let’s see!

Logically speaking, 2,100 is our simple “Key Pivot” reference level and we’ll use it in our short-term planning.

Yesterday was a perfect Trend Day (see our new “Trend Trader’s Perfect Pullback” Lesson Bundle) developed, taking price up away from the 2,070 level to where we are currently into 2,100.

We’re seeing a short-term Triangle Price Pattern develop as drawn with the Midpoint near 2,095.

This makes the falling upper trendline intersect our simple 2,100 level and the lower support at 2,090.

Also, be sure to study today’s morning reference post “Planning the Key Levels for Today’s Fed Day.”

Let’s dig into Breadth to see additional clues about the health of the current rally.

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

This chart will likely change quickly as stocks ride the waves of the Fed Day announcement.

For now, we’re seeing a slightly BEARISH signal given the strength in defensive names.

Today’s top two sectors are the defensive Staples and Utilities.

We’ll remain cautious and continue focusing on our higher timeframe reference levels.

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

TripAdvisor (TRIP), ZELTIQ (ZLTZ), Nordstrom (JWN), and Tesla Motors (TSLA)

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

Energen (EGN), Sanofi (SNY), Juno (JUNO), and GrubHub (GRUB)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “June 17 Fed Day Market Update and Stock Scan”

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