New Lows into Support Market Update and Stock Scan Oct 13

Oct 13, 2014: 12:26 PM CST

At the halfway point today, we’re balancing the odds of another bullish reversal off support against the possibility of a continuation of the persistent selling pressure we’ve seen lately.

We’ll start with our chart of the S&P 500 for clues:

For additional commentary, see this morning’s update on “Planning Another Possible Intraday Reversal from Positive Divergences.”

The main idea is that we may see another repeat performance of what we saw October 8th when price touched a new low against “triple” positive market internal divergences.

There’s no guarantee price will once again rally higher but do focus on this potential bullish outcome.

The market would be an outright, aggressive short-sale under 1,900 again.

Sector Breadth reveals a Balanced Bullish perspective:

Sector Strength today concentrates in Financials and Utilities which sends a mixed (yet balanced) perspective.

We see no sector deviating from others except for Energy which is today’s weakest performer.

Aggressive traders may look for a reversal and to play bullish stocks into the close:

Southern Co (SO), Wisconsin Energy (WEC), Ameren Corp (AEE), and Apt Inv (AIV).

Otherwise, bearish candidates include the following downtrending intraday stocks:

AutoNation (AN), Noble Energy (NBL), QEP Resources (QEP) and Ebay.

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Corey Rosenbloom, CMT
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