June 9 Intraday Reversal Stock Scan and Trading Update

Jun 9, 2014: 1:33 PM CST

While the breakout “short-squeeze” impulse market initially continued this morning through new highs, we saw a mid-day V-Spike reversal down and we’re in collapse mode as I freeze the chart for the Monday mid-day update.

Let’s note the intraday action, sector breadth, and of course our trending stock candidates for the day:

While the morning was simply “More of the Same” (see the last two days of mid-day short-squeeze bullish breakout impulse updates), today’s session gave us something different.

Price reversed with divergences down away from the 1,955 index level and broke intraday support to trade all the way back to the lower “rectangle” support line as highlighted.

The key focal point going forward is the 1,947 level and we’ll be watching it extremely closely for a “bullish bounce/rally” opportunity off support or else a likely bearish breakdown trigger beneath the level.

Sector Breadth reversed its message along with price:

The message so far is a bullish picture that deteriorated with the intraday reversal.

Still, we’re seeing strength concentrate in Industrials, Energy, and Financials (that’s typically bullish) and away from Utilities and Health Care (which is also bullish to see relative weakness in the defensive sectors).

It’s still a message of bullish strength and money flow, but it’s a picture that deteriorated from the picture over an hour ago.

At the moment, roughly 60% of Dow Jones and S&P 500 stocks are negative on the session.

Unlike the last two sessions, we can concentrate our attention on Bullish AND Bearish intraday candidates:

Family Dollar (FDO) and Dollar General (DG) are showing the strongest price action, at least in terms of their gap – not their intraday action since the gap.

Other candidates include defensive name Clorox (CLX) and financial company Comerica (CMA).

We can now highlight bearish names (something that we couldn’t do on the last two ‘bull breakout’ sessions):

Tyson Foods (TSN), Boston Properties (BXP), AbbVie Inc (ABBV), and Gilead Sciences (GILD).

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Corey Rosenbloom, CMT
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