June 2 Reversal Spike Market Update and Daily Stock Scan

Jun 2, 2015: 12:40 PM CST

Were you eager for a bearish breakdown in the market today?  Bulls had other plans again!

Despite everything, BULLS still rule this market and that’s the current reality – fighting it has been futile.

Let’s take a look at the current picture and plan the next swing in the market:

Buyers swooped in once again at a key level – this time our 2,100 target – with a powerful V-Spike Intervention Reversal that created a strong bullish trend session through the morning.

Not only did price target the 2,110 level but now we’re trading into the upper target of the range near 2,120.

Reality trumps idealism in the market – price is king… and buyers continue to exert their will over sellers.

For now, we’re monitoring the remainder of the trading day with the 2,118 and 2,120 levels as pivots.

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

Just like yesterday, the Breadth Chart CLEARLY favors the Bulls/Buyers as money flow enters stocks again.

Our strongest sectors are the Discretionary, Industrials, and Energy sectors – all of which are above 80%.

The weakest three sectors – not surprisingly – are the “Defensive” names Staples, Health Care, and Utilities.

Keep in mind that there’s only ONE Utility Sector stock positive right now – buyers are avoiding defensive names.

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

US Steel (X), Diamond Offshore (DO), FMC Tech (FTI), and Kate Spade (KATE).

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

PPL Corp, Xcel Energy (XEL), CMS Energy, and Westar Energy (WR).

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “June 2 Reversal Spike Market Update and Daily Stock Scan”

  1. Wasim Says:

    I don’t really worry much about reversal since I always have tight stop out level, so that always protecting me from any sort of trouble, it is also quite amazing to be working with a quality broker like I am using OctaFX, it has proven service with 50% bonus on deposit, low spread of 0.2 pips even lower at times while the stop out level is just 15%, so it’s all too brilliant to be working with a company of this level and class.