Market Crashing Stock Scan and Level Update for Jan 5

Jan 5, 2015: 3:09 PM CST

Stocks tumbled sharply this morning, breaking a key support level which exacerbated the selling pressure already underway.

Let’s update our levels and note the strongest downtrending (collapsing) stocks for today’s trading session.

I’ll provide a more detailed update and targets for Daily Members but for now, let’s focus on the failure to hold the price and 20 day EMA confluence support near the 2,055/2,060 index level.

The result was a collapse of the support floor, leading instantly to a touch of the 2,035 target (50 day EMA0 and now a journey likely to touch or break the 2,000 level.

Reference early December for a similar pattern of how the most recent sell-off developed.

Sector Breadth – not surprisingly – is very bearish today, confirming the collapse:

With 25% of S&P 500 stocks higher, the Health Care sector shows strength today.

You should instead be looking for short-sale candidates to trade in the weakest sectors as the tide of selling continues.

Don’t find the bullish diamond hiding in a sea of selling pressure – go with the trend and tide.

Thus, Energy and Industrials with Technology may be great places to look for more short-sale (short-term) candidates.

These may include our weakest stocks on today’s session according to our algorithmic scan:

Herbalife (HLF), Teekay (TK), Telephone/Data (TDS), and  United Rentals (URI).

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Corey Rosenbloom, CMT
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2 Responses to “Market Crashing Stock Scan and Level Update for Jan 5”

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