May 14 Intraday Trading Update and Breadth Message

May 14, 2014: 1:22 PM CST

We’re seeing a logical retracement down from the recent breakout above the 1,900 level in the S&P 500.

What’s going on beneath the scenes from breadth and which stocks are potential trend day trading candidates?

Let’s start with our S&P 500 intraday chart:

We’re seeing another consolidation or triangle action in the S&P 500 chart – this time the levels compress around the 1,894 and 1,895 intraday levels.

A downside break under 1,894 opens a bearish pathway toward the 1,892 level while a continuation breakthrough above the 1,895 intraday level opens a potential bullish reversal and breakout pathway.

The NYSE TICK suggests a stronger position for stocks given that the TICK Highs are higher than yesterday’s closing activity as are the TICK lows (higher than yesterday’s lows so far).

We’re getting another mixed message from Sector Breadth:

We segment the Sector Breadth Chart by Defensive (red – Staples, Health Care, and Utilities) and Offensive (green) Sectors as we compare money flow by Risk-On or Risk-Off activity.

The Utilities Sector is our relative strength leader along with Materials.

The picture is mixed today and there’s no clear distinction in Risk-On/Risk-Off movement.

The weakest sectors include Consumer Discretionary, Industrials, and Consumer Staples.

Even when the stock market is consolidating, there are potential trend day trading candidate stocks from our scan:

Iron Mountain (IRM), Kinder Morgan (KMI), Western Digital (WDC), and CenturyLink (CTL).

The following represent our potential downtrending intraday stock candidates from our scan:

Fossil Group (FOSL – strong gap down), IBM, M&T Bank (MTB) and Zions Bancorp (ZION).

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Corey Rosenbloom, CMT
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