May 22 Stock Scan and Range Day Holiday Update

May 22, 2015: 1:18 PM CST

Buyers continue to enact their will on the market, preventing what would otherwise be a logical retracement.

Note the near-term buy-program levels that have served as key price support – the levels have risen today.

Let’s take a look at the current picture and plan the next step:

As we slide into the Memorial Day holiday weekend, stocks continue to trade within the sideways range parameters after the divergent breakout.

Note a Buy-Program support level developing into 2,125 which has extended slightly higher into 2,127 today.

While the market remains within this consolidation, boosted by capital injections at support, we’re simply going to remain on our toes and playing this range, acknowledging and adapting to the bullish money flow holding the stock market up at the highs.

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Let’s see what our Breadth Chart reveals about current market strength (or weakness):

With the market flat and consolidating, it’s no surprise that we’re seeing a confirming signal in Breadth.

All sectors – except Industrials, Staples, and Utilities (which is actually a bullish sign) are at the 50% “flat” Breadth Line.

Like the market today, it’s probably better to take today off and enjoy an extended weekend!

You’d want to trade stocks showing relative strength, like our top stocks today:

Ctrip.com (CTRP), Expedia.com (EXPE), John Deere (DE), and Goldman Sachs (GS)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Deutsche Bank (DB), The Fresh Market (TFM), Yum Brands (YUM), and Medtronic (MDT)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “May 22 Stock Scan and Range Day Holiday Update”

  1. Yasmeen Says:

    We need to be very careful with retracement since Forex is a type of market where it does not take long for things to change up, so if we make even slight mistake we can end up with throwing away everything, I am lucky to be working with highly rated company like OctaFX where I get perfect guide especially with their top analysis service, it is provided on daily basis and is deadly accurate, so that allows me to work really well and easily.