Midday Market Meltdown Update and Big Stock Scan Jan 7

Jan 7, 2016: 3:01 PM CST

Down we go again as China fears spread throughout the global markets this week.

Crude Oil collapsed as well but spiked higher off the fresh new multi-year low as the downtrend continues.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

As I highlighted last weekend to our Intermarket Strategy Members, we took a bearish turn going into 2016.

So far, that’s been the correct strategy as price continues the higher timeframe distribution pattern (shown to members this weekend).

Check out this morning’s post for additional details and target levels – this is actually in line with expectations.

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

Bearish strategies win the day again as all sectors are beneath their 50% level.

Utilities (a defensive group) and Discretionary (an offensive group) are the ‘strongest’ sectors today.

It’s more important to note the widespread distribution or weakness in the broader market – don’t fight it.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Comms Sales (CSAL), Rangold (GOLD), Royal Gold (RGLD), and Agnico Eagle (AEM)

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

Paychex (PAYX), Alibaba (BABA), JinkoSolar (JKS), and Autodesk (ADSK)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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