March 2 Reversal Market Update and Trending Stock Scan

Mar 2, 2015: 1:26 PM CST

After forming a base support level, stocks rallied sharply this morning and continued a short-term sideways trading range as described in today’s update.

Here’s the Structure and Planning Levels on the S&P 500 intraday:

After a near-exact repeat day Friday (from Thursday’s pattern), buyers flooded the market this morning with a powerful rally that took the S&P 500 back to the mini-resistance level into 2,113 where we develop our trade plan for today.

Note the 2,110 level and potential support bounce and pivot level to plan the rest of today.

A continued movement up off this level – and through 2,113 – suggests stocks have a shot at creating a new high, and that would be thanks to the short-sellers stopping out in yet another short-squeezed bullish impulse.

The alternate plan would be to short or be defensive on a breakdown under 2,110 that targets 2,104.

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

Today, Sector Breadth is quite BULLISH with relative strength in the offensive sectors and weakness in the defensive.

In fact, the three weakest sectors today clearly are the Energy, Staples, and Utilities groups.

This pattern in money flow does suggest a bullish continuation swing higher in price.

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

BHP Billiton (BBL), Novartis (NVS), Xcel Energy (XEL), and DTE Energy (DTE)

Potential downtrending candidates exist in stocks showing relative weakness today:

Ingram (IM), CST Brands (CST), Kroger (KR), and GoPro (GPRO)

Join my colleague John Carter for another exciting webinar Tuesday!  Click the image below for more information:

Corey Rosenbloom, CMT
Afraid to

Follow Corey on Twitter:

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).

1 Comment

One Response to “March 2 Reversal Market Update and Trending Stock Scan”

  1. Mehreen Says:

    It’s amazing to see market holding onto the trend for so long otherwise we usually see it changing week after week but from last few weeks it has become kind of predictable so that is slightly unlike Forex but for me it is all good due to OctaFX broker and their wonderful analysis service which they provide daily for free and that helps me so much in trading because of the accuracy level and over past year I have never lost any big trade and results has given me growth of above 100% per month consistently.