March 5 Stock Stab Scan and Market Update

Mar 5, 2015: 3:04 PM CST

Stocks stabbed at the lows with more sharp rallies today, as we’ve seen over the last few sessions.

We’re now seeing a sideways triangle consolidation at key levels with a clear pathway forward.

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

Note the sideways intraday triangle trapping price around the 2,097 pivot (midpoint) level.

The falling upper trendline – where we’re at now – appears at 2,103 while the rising lower trendline intersects 2,096.

Continue playing the range as price bounces between these trendlines.

Also, be ready to trade a breakout above the 2,104 level or under 2,095 for a possible impulse.

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

Today’s Breadth reading is bearish, given that the relative strength appears in the defensive names (Health Care and  Utilities).

However, Financials are showing strength while all other sectors remain muted/neutral at the 50% line.

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

Kroger (KR), Golar (GLNG), Canadian Solar (CSIQ), and Regeneron (REGN)

Potential downtrending candidates exist in stocks showing relative weakness today:

Five Below (FIVE), Potash (POT), Mosaic (MOS), and Flowserve (FLS)

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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 5 Stock Stab Scan and Market Update”

  1. John Says:

    It looks very much bullish all of these so we need to be extra careful in order to succeed otherwise if we are not careful then it can lead into huge problems and we might end up throwing away all the capital that we have collected. I always keep eye on the daily situation with my Android phone and thanks to OctaFX, I can trade from mobile with complete comfort and get better chance of success as previously with wrong companies.