June 25 Range Breakout Market Update and Stock Scan

After yesterday’s Trend Day Down, price stabilized at support into a morning Range Day.

However, mid-day we’re seeing an instant breakdown under support which calls our attention.

What’s going on now and what levels are important? Let’s see:

Here’s a key strategy planning quote from last night’s members-only update:

“…[P]rice would be slightly more likely to fall (to continue the range) than it would be to rise.”

“FOCUS ON PRICE and the equally-likely movement AWAY FROM the current midpoint/magnet levels here (2,100/2,110).”

A morning range gave way to a continuation of the expected/logical sell-swing in price as we see the market move “Down Away From” resistance with divergences potentially “Toward” lower support zones as seen above.

A true continuation of the range sets up a sell-swing back toward 2,080 but for today and the rest of the week, we’ll focus on the Fibonacci Retracement grid.

The break under 2,110 sets in motion a play toward 2,100 and then perhaps 2,095.

Each of these would be both targets and potential “support-bounce” zones for intraday traders.

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

Sector Breadth today confirms the expected sell (retracement) swing in the market.

All sectors are weak today again with Health Care – fresh off news from the Supreme Court upholding the Affordable Health Care Act (“Obamacare”) – leading the sector strength today.

Financials, Industrials, and Energy are near 10% Breadth while all other sectors trade under the 50% Line.

Like yesterday, bearish “risk off” money flow is occurring so far today.

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

Monster Beverage (MNST), HDFC Bank (HDB), Univ. Health Services (UHS), Meritage Homes (MTH)

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

Joy Global (JOY), Green Plains (GPRE), Gramercy Property Trust (GPT), and Caterpillar (CAT)

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).