March 4 Repeat Day Market Update and Stock Scan

Mar 4, 2015: 2:05 PM CST

Today’s session is playing out identically to yesterday’s session, with the early down-move and the reversal off the lows.

We’ll highlight yesterday’s structure and note whether we see a further repeat of the pattern… or perhaps something different (like a sell-swing into the close).

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

Stocks were again logically weak in the morning but saved with an intervention buy power reversal off the morning lows.

Stocks traded up through the falling moving averages, and if you compare the red and green arrows, you can see the identical structural (price) repetition, which is a concept I highlight and document each time to members.

For now, the key intraday pivot level is 2,100 and we’re watching a departure lower away from this level now.

Should buyers intervene again and take price back above 2,100, we’d be bullish.

Until then, compare yesterday’s closing session with what happens for the remainder of today.

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

How much power does one man have on moving the stock market?  Or at least a sector of it?

Comments from Supreme Court Justice Anthony Kennedy (interpreted by media outlets as positive for upholding the Affordable Care Act) sent many health care stocks soaring, and our strongest sector by far is the Health Care sector.

All other sectors should be interpreted as very bearish, given that the strongest performers – Tech and Materials – see sector breadth readings near 25%.

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

Community Health (CYH), Olin (OLN), GoPro (GPRO), and Bristol-Myers Squibb (BMY)

Potential downtrending candidates exist in stocks showing relative weakness today:

Abercrombie (ANF), Rio Tinto (RIO), CarMax (KMX), and Century Link (CTL)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “March 4 Repeat Day Market Update and Stock Scan”

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