Market Update and Stock Scan for September 10

Sep 10, 2014: 1:36 PM CST

The S&P 500 is downtrending on the intraday frame and pulling back from a resistance target near 2,010, but we have a key pivot point that will determine whether we’ll be bulls or bears for the next few sessions.

Let’s take a look at the charts, breadth, and highlight our trending stocks of the day.

In simplest terms, the S&P 500 is “Bullish for a Breakout” above the current trendline resistance into 1,995 and is otherwise “Bearish for Trend Continuity” under the 1,995 pivot.

We’ll focus our attention on this level during today’s session and beyond.

We do note a lengthy positive Momentum and TICK Divergence that undercut today’s low near 1,985 and the subsequent bullish impulse (power-swing higher) that may develop into a larger intraday reversal with a break above the prior high above 1,995.

Continue to reference the 1,995 level as your key inflection pivot.

Breadth actually paints another mixed-to-bearish picture:

Our strongest sector (on a bullish reversal session) is actually Consumer Staples which is traditionally a defensive name.

However, before we get too bearish, notice that the worst performing sector of the day is the similarly defensive Utilities Sector.

Strength clusters in the Financials and Technology, both bullish sectors which suggests additional upside action.

Potential bullish trend day continuation (buy retracements) stocks include the following:

Tyson Foods (TSN), Goodyear Tyre (GT), Proctor and Gamble (PG), and Monster Beverage (MNST).

Bearish “intraday reversal” or downtrend continuity stocks include these candidates:

Avalonbay (AVB), Equity Residential (EQR), Harley Davidson (HOG), and Valero Energy (VLO).

Corey Rosenbloom, CMT
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