May 28 Ranging Trend Intraday Trading Update
Price continued its uptrend with a rising range session this morning.
Let’s take a look at our key S&P 500 levels, Sector Breadth, and trending stock candidates for the day.
With a weaker open, price traded down to the 1,908 support level into a positive dual divergence (7:45am PST) which preceded a strong rally back to – then above – the 1,912 high.
Another negative dual divergence undercut the rally and we see price trading within a rising range back to the session highs under 1,914.
Today’s Sector Breadth sends a bearish or cautious message:
Money Flow (Sector Strength) is strongest in the Defensive names of Utilities and Health Care, with Industrials and Energy not far behind.
Our weakest sector today – Financials – was yesterday’s strongest sector (it was a bullish message yesterday and a bearish one today).
Potential uptrending stock candidates include:
Stryker (SYK), Delta Airlines (DAL), ConocoPhillips (COP), and St. Jude Medical (STJ).
Possible downtrending/sell candidates include:
Ebay (EBAY), Rio Tinto (RIO), GlaxoSmithKline (GSK), and DSW Inc.
Caution may be the best strategy as opposed to blind bullishness at the highs.
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
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).