June 25 Range Breakout Market Update and Stock Scan

Jun 25, 2015: 1:28 PM CST

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)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “June 25 Range Breakout Market Update and Stock Scan”

  1. Mushafir Says:

    Range break out can be seriously profitable, so that’s why if we use it correctly with the trend, it can bring great rewards and that’s where I am very lucky that with a great broker like OctaFX, I can get great help with their excellent news and analysis facility, so trading with this means I am always successful and even if I fail it’s not huge losses due to strict money management, so following their daily service with tight money management makes it all so good!