New Month June 1 Stock Scan and Flat Market Update
Stocks continued a sideways range, though we’re just now seeing a potential bullish breakout.
Let’s take a look at the current picture and plan the next swing in the market:
Price initially continued the intraday downtrend (falling trendline channel) but reversed up off another positive divergence at the session low.
From there, we saw a sharp rally take price above the 2,114 level – the falling trendline.
We’re monitoring the rest of the session for additional bullish action on an “Open Air” movement higher… and will balance that approach with a bearish/cautious stance IF price falls back under 2,112 and the trendline pattern.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Today’s Breadth Chart favors the BULLS as all sectors (except Energy) are above the 50% line.
Our strongest sectors are Industrials and Discretionary, followed by the defensive Health Care and Utilities.
Until proven otherwise, we’ll continue to hear a bullish message from Sector Breadth so far.
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
SINA Corp, Linked In (LNKD), Infosys (INFY), and DISH network.
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Puma Biotech (PBYI), Jumei (JMEI), BHP Billiton (BBL), and WYNN Resorts.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
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