May 27 Midday Trend Day Market Update and Stock Scan

May 27, 2014: 1:49 PM CST

With the S&P 500 breaking the 1,900 barrier to all-time highs in a trend day, let’s scan which stocks are strongest and what breadth hints about today’s breakout.

Here’s the breakout trend day so far:

The initial breakthrough above 1,900 triggered an immediate “Short-Squeeze” where sellers rushed to buy-back to cover losing positions which was joined with buyers/bulls adding to existing positions or else throwing caution to the wind and buying the breakout to all-time highs.

Price surged off the open into the 1,912 pivot and has traded down against this level yet rallied up off the 1,908 50 EMA and price support pivot.

Sector Breadth confirms the bullish move with “Across the Board” bullish money flow:

There isn’t a clear distinction between strong and weak sectors, meaning the rally and money flow is broad-based across all sectors (including the Defensive names like Staples and Utilities).

It’s a bullish sign to see Financials (XLF) slightly stronger than all other sectors today.

Potential trend day continuity or swing-trading candidates include the following:

Tibco Software (TIBX), American Express (AXP), Family Dollar (FDO), and Priceline (PCLN).

Bearish or “fade the trend” candidates include the following:

Agnico Eagle Mines (AEM), Goldcorp (GG), Newmont Mining (NEM), and Freeport-McMoRan (FCX).

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Corey Rosenbloom, CMT
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One Response to “May 27 Midday Trend Day Market Update and Stock Scan”

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