June 7 Breakout Reversal Market Update and Big Stock Scan

Jun 7, 2016: 2:26 PM CST

Price extended the breakout from Friday’s worse-than-expected Jobs Report (how’s that for logic?).

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

First, let’s view this morning’s update on the S&P 500 with respect to the broader picture and key levels.

If you’re curious what a “Short-Squeeze” looks like, take a moment to view the 20 point laborious rally up away from 2,100.

On a breakout, buyers initially push price above a key level which triggers bears (short-sellers) to take their stop-losses (which are buy-to-cover orders).

Additional buyers jump in (buy) at higher levels which forces more short-sellers to cover.

The result is a one-sided directional movement “up away from” a key resistance level.

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

With the price action, our Sector Strength action also is bullish.

Our strongest sectors are the “Offensive” (green) groups and the weakest clearly are the defensive groups.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

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

United Natural Foods (UNFI), Newell Brands (NWL), Western Digital (WDC), and International Paper (IP)

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

Biogen (BIIB), Alexion (ALXN), Valeant (VRE), and JD.com (JD)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “June 7 Breakout Reversal Market Update and Big Stock Scan”

  1. Umer Says:

    Trading on breakout can be seriously beneficial if we’re able to get it right, but if we’re not getting it right then we could face serious problems, so that’s why we got to be very careful, I keep my safe side and that’s to do with OctaFX broker’s lovely rebate program that gives me 50% back on all trading orders and that’s even with losing trades too, so that’s why it’s so good and helpful to my performance and helps me trade nicely.