More Selling and Jobs Market Update and Stock Scan Jan 8

Jan 8, 2016: 3:13 PM CST

You would think that a stronger Jobs Report this morning would be a catalyst for a big stock market rally, but alas no.

Price continued the ongoing liquidation (downtrend) with a retest of the low under 1,940.

However, clear signs of bullish life are emerging – focus on these factors and the play at 1,935.

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.

Positive divergences in momentum and TICK (internals) undercut today’s retest of the low under 1,940.

A bullish rally may quickly and easily emerge off this support pivot so use it as a critical bull/bear level.

If under 1,935, the slide toward 1,900 continues – which would be odd without a meaningful rally (bounce).

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

Beyond the positive momentum and TICK divergence at the critical support pivot, we’re seeing somewhat stronger Sector Strength today.

Our strongest sector remains the Utilities group, but we’re seeing life across the board.

No other sector crosses the 50% Breadth threshold, but most are close which gives a less bearish signal than we’ve been seeing (it’s not yet officially bullish but it’s likely getting there soon).

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:

Vodafone (VOD), Dominion (D), Scripps (SNI), and Antero (AR)

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

Synnex (SNX), Mylan (MYL), Alere (ALR), and Novartis (NVS)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “More Selling and Jobs Market Update and Stock Scan Jan 8”

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