March 10 Selloff Update and Trending Stock Scan

Mar 10, 2015: 1:50 PM CST

The selling pressure continued today on the support breakdown under 2,070’s pivot.

What resulted – logically – was a strong trend day down toward the next target just like we saw on Friday.

Let’s update our key levels, highlight the divergence, and of course note trending stocks today:

After a reasonable bounce up off the 2,065/2,070 target level, stocks fell under support (with a gap) and then now has traded all the way down toward the 2,050 target.

We’re watching our 2,050 pivot and if it fails – as seems expected here – then the “Mirror Image Foldback” pattern could easily continue, taking price all the way down to the 2,000 return target.

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

With the broader market much lower, all sectors – except the defensive Utilities sector – are lower today.

In fact, all sectors are at or beneath the 10% level – meaning 90% of stocks in the sectors are trading lower on the day.

In fact, every single Dow Jones (30) stocks are negative right now and 91% of stocks in the S&P 500.

This isn’t a day to go long (buy) at all.

We have potential bullish trend continuation plays in the following stocks from our scan:

Credit Suisse (CS), Acadia (ACAD), Urban Outfitters (URBN), and Cempra (CEMP)

Potential downtrending candidates exist in stocks showing relative weakness today:

BHP Billiton (BHP), Comcast (CMCSA), Barnes & Noble (BKS), and Axis Cap (AXS)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “March 10 Selloff Update and Trending Stock Scan”

  1. Roger Says:

    It is definitely a strong sellout point but we must realized that manipulation is a strong stage of trading and if we wish to get proper success then we should avoid going blindly but go with proper risk management. I am fortunate to be trading with OctaFX because with their offer of 50% bonus I can do risk management well given that this bonus is not a show piece but something that I can take into margin levels to calculate.