Nov 12 Update and Stock Scan Down from the Highs

Nov 12, 2014: 1:35 PM CST

“And now, for something a little different.”

Stocks have traded sideways into the 2,040 S&P 500 level and we can define a short-term range for our trade plans.

Note this morning’s market update on the magic of the 2,040 level and how we’re planning around it.

Here’s our updated levels as the S&P trades through all-time highs:

Our short-term reference levels include the 2,032 price support (double bottom today) along with the 2,040 resistance in the S&P 500.

We’re simply pro-trend breakout (short-squeeze) bullish on an impulse above 2,040… bearish for a possible breakdown (short-term reversal plays) under 2,030, and neutral to trade “ping-pong” between this 8 to 10 point range.

Breadth is slightly mixed – much like the market at the moment:

Despite the down or sideways price action this morning, our Sector Strength chart is actually flashing a very BULLISH message.

Strength of the day resides in the Offensive or Bullish sectors, particularly Consumer Discretionary, Technology, and Industrials.

Our weakest sector – surprisingly – is the Utilities group which reveal only one of thirty stocks positive right now.

We have potential bullish trend continuation plays in the following stocks:

Fossil Group (FOSL), Tiffany (TIF), Cabela’s (CAB), and Lululemon (LULU).

Potential downtrending candidates exist in stocks showing relative weakness today:

BB&T (BBT), Duke Energy (DUK), Public Service Enterprises (PEG), and JP Morgan (JPM).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to

Follow Corey on Twitter:

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).

Comments Off on Nov 12 Update and Stock Scan Down from the Highs

Comments are closed.