Midday Market Update and Stock Scanning for July 29

Jul 29, 2014: 1:24 PM CST

Price provides a choppy Range Day environment for traders ahead of tomorrow’s “Fed Day” announcement.

Let’s chart key levels, note breadth, and highlight the stocks in play for today’s session.

We’ll start with the intraday update of the S&P 500:

Today’s session developed a Range Day or consolidation session between the 1,985 high (the opening gap of July 25) and just under the support (rectangle) trendline low near 1,975 (which is actually a decent 10 point range).

Pay attention to the current 1,980 pivot and the potential bullish upside breakout play toward 1,985 and balance this upward pathway with the logical downward or sell pathway back to the 1,975 low.

Also – for educational purposes to new traders – study the dual divergences (Momentum and Internals) that preceded the recent reversals.

Sector Breadth gives another conflicting message at the moment (yet it’s mostly bullish):

Strength still concentrates in the Financial, Discretionary, and Technology sectors like yesterday, but we’re seeing similar out-performance (relative strength) namely in Energy (not so good) and Health Care.

There’s good news in that the weakest sector of the day – Utilities – was the strongest sector mid-day yesterday.

Speaking of bulls, let’s shift our attention to bullish-trending stocks for potential buy-trades the rest of the day:

Darden Restaurants (DRI), Wynn Resorts (WYNN), Costco (COST), and Bristol-Myers (BMY).

Bearish potential trend day continuity stocks include the following candidates:

Whirlpool (WHR), Expeditors International (EXPD), Electronic Arts (EA), and Parker-Hannifin (PH).

Take a look at a recent update in Electronic Arts (EA) I wrote that highlighted a likely sell signal (which we’re seeing play out currently).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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