May 1 Post-Fed Creeping Uptrend Intraday Update

May 1, 2014: 12:35 PM CST

It’s the day after the April 30th Federal Reserve announcement and the market continues its upward drift.

Let’s take a mid-day moment to recap the current levels, sector breadth, and trending intraday stock candidates.

Our S&P 500 intraday snapshot shows a clear rising trend – even rising parallel trendlines – which means we’ll likely continue seeing additional upside price action within the structure until we see a breakdown of the rising trendline (currently intersecting 1,883).

Remember, when price rises and breaks resistance, the short-sellers (bears) help push price higher with their collectives stop-losses (short squeeze).

Nevertheless, continue monitoring price relative to the important 1,885/1,886 reference level (bull above; cautious under).

Our Sector Breadth Grid reveals a mixed picture of money flow:

The last two sessions have shown bullish money flow during our mid-day update and indeed price continued to trend higher throughout the rest of the session.

Today however, we see a mixed picture where sector breadth is strong in BOTH the Offensive/Risk-On Sectors (Financials, Discretionary, and Technology) and the Defensive/Risk-Off Sectors (Health Care and Utilities).

Sector Breadth reveals caution and a hint of bearishness throughout the rest of the trading day.

Finally, let’s update our top uptrending stock candidates for the day:

Whole Foods Market (WFM), American Tower Corp (AMT), Visa (V), and CBRE Group (CBG).

Our downtrending candidates include Airgas Inc (ARG), Carnival Corp (CCL – back on the list), Murphy Oil (MUR), and Cardinal Health Inc (CAH).

To follow-up on yesterday’s educational Fed Day lesson, be sure to read the post “A Quick Tip on Trading Fed Days.”

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

Corey Rosenbloom, CMT
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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).

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