June 3 Bouncing Market Update and Stock Scan
Yesterday saw a morning BEAR Trap and today we experienced a BULL Trap!
Even while the market continues to compress in a range, it’s certainly not boring!
Let’s take a look at the current picture and plan the next swing in the market:
While buyers swooped in to save the market at 2,100 and prevent a sell-off, it was the sellers who prevented an upside breakout this morning on the reversal down from the 2,118/2,120 resistance target.
Once again, negative divergences at the high suggested a FAILURE outcome which is indeed what occurred.
At this point, we’re still tracking price between these short-term compressing trendlines into 2,118 and 2,110.
We should be neutral and cautious while price continues to play Range Ping-Pong.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Yesterday saw bullish money flow into the market and today we’re seeing a similar picture.
The strongest sectors clearly are the Offensive/Bullish (Risk-On) groups.
Energy and Utilities, however, are showing ZERO stocks (in the sector) positive at the moment.
Staples and Health Care – also defensive – are under the 50% Breadth line, all of which suggests bullishness.
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
Precision Castparts (PCP), Ann Inc, Expeditors (EXPD), and C.H. Robinson (CHRW)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
National Grid (NGG), Starwood Property (STWD), Sabre Corp (SABR), and Newmont Mining (NEM)
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Corey Rosenbloom, CMT
Afraid to Trade.com
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