May 2 Jobs Report Reversal and Intraday Update

May 2, 2014: 12:14 PM CST

Which stocks are trending in today’s “Jobs Day” mid-day update and what signal is Sector Breadth (money flow) sending?

Let’s take a look, starting with the intraday S&P 500 reversal and key levels:

After a better than expected jobs report and unexpected fall in the reported Unemployment Rate to 6.3% (consensus called for 6.3%), stocks initially rallied off the open but reversed violently down against 1,890’s resistance.

A Double-Bottom Support pattern took price higher off the 1,881 key inflection level.

We’re now watching the 1,886 retracement high 9where we are now) and the potential for a reversal down against this level and likely downside sell-signal to trigger under 1,884.50.

Sector Breadth is actually bullish at the moment:

Like yesterday’s session, we see a concentration of Sector Strength or money flow in the Offensive/Risk-on Sectors like Financials, Discretionary, Materials, and Technology.

For once, Utilities (and other Defensive Sectors such as Staples and Health Care) is the worst performer of the session.

With a potential bullish backdrop, let’s take a look at our potential trend day candidate stocks:

Capital One Financial (COF), Wynn Resorts (WYNN), Motorola (MSI), and Bard (BCR).

The next set of charts represents potential downtrending stock candidates:

Public Storage (PSA), Johnson & Johnson (JNJ), Sempra Energy (SRE), and Ameren Corp (AEE).

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Corey Rosenbloom, CMT
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