November 3 Breakout Market Update and Stock Scan

Nov 3, 2014: 2:34 PM CST

Stock prices continued to creep higher after breaking above the 2,000 level in the S&P 500.

Sellers stopped out and buyers entered, helping to propel price higher in a breakout event.

Here’s our updated levels as the S&P is inflated to all-time highs:

The impulsive breakout above 2,000 on Halloween set the stage for a continued bullish breakout and movement up away from the 2,000 level.

The instant (simple) target was the prior all-time price high into 2,020 … and then even beyond that.

Ultimately, the market remains bullish while moving through “open air” and all-time highs beyond the 2,020 level.

The market thus becomes cautious on a re-break or potential Bull Trap under 2,020.

Breadth is mixed at the mid-day period:

Our strongest sector is the BEARISH (or defensive) Utilities Sector which doesn’t bode well for the bulls/buyers (it actually argues for a potential bull trap outcome).

Yet we see a pocket of strength in the BULLISH or offensive sectors of Financials, Discretionary, and Technology.

Money flow is mixed at the highs which reflects indecision and a lack of bullish conviction – yet price trades higher.

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

Omnicom Group (OMC), Walgreen (WAG), Apple (AAPL), and Whole Foods Market (WFM).

Potential downtrending candidates exist in stocks showing relative weakness today:

Laboratory Corp (LH), Quest Diagnostics (DGX), Sysco (SYY), Home Depot (HD).

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 Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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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