June 3 Bouncing Market Update and Stock Scan

Jun 3, 2015: 12:58 PM CST

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)

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).

Comments Off on June 3 Bouncing Market Update and Stock Scan

Comments are closed.