Mixed Market Update and Trending Stock Scan Feb 26

Feb 26, 2016: 2:20 PM CST

The initial breakout continued but stalled into the 1,960 area, sending price back to the breakout level.

Will price continue to break out? See yesterday’s update for targets if so.

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

The initial break above 1,945 set in motion a short-squeezed breakout toward 1,960.

A negative momentum (and market internal) divergence undercut the new breakout highs, resulting in an initial pullback (retracement) back toward the 1,945 breakout level.

Focus once again on 1,940/1,945 as the “bull/bear” pivot.

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

Despite the pullback after the breakout, Money Flow today is bullish – very bullish.

Our strongest sectors are from the “Risk-On” Offensive groups while the weakest are defensive names.

Staples and Utilities particularly are today’s weakest sectors – and even that is bullish.

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:

Herbalife (HLF), Charles Schwab (SCHW), Baidu (BIDU), BB&T (BBT)

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

Universal Display (OLED), OGE Energy, Costco (COST), and Coca-Cola (KO)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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