June 19 Intraday Trading and Stock Scan Update

Jun 19, 2014: 12:01 PM CST

After yesterday’s Fed Day surprise breakout, the market is taking a break and consolidating after yet another stellar upside rally.

Let’s highlight the structure and pay close attention to the key levels at the moment:

The Fed-fueled rally resulted in a straight-up impulse toward 1,960 and the market has retraced gently down from this level.

The key focal point for today’s session – the “Line in the Sand” – is the 1,954 EMA and price support level.

A support-bounce here could set in motion a mini-bull flag rally back to the session highs, and the upward path would be favored as long as price can remain above the 1,954 level.

However, a breakdown under today’s support low opens a bearish price pathway that could result in a sell-off toward 1,946.

Our Sector Breadth chart tilts bearish at the moment:

Roughly half of Dow and S&P 500 stocks are positive on the session at the moment.

The bearish message comes from the bullish strength in Utilities (a defensive sector) along with Staples and Energy.

The worst performing sectors today are our anchors for bullish strength – Financials and Technology.

Despite the sideways action, there are always bullish candidates to trade from our scans:

Celgene (CELG), Ventas (VTR), Newmont Mining (NEM), and WellPoint Inc (WLP).

Bearish candidates include the following:

Coach (COH), Juniper Networks (JNPR), Conagra Foods (CAG), and Whole Foods Market (WFM).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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