Oct 12 Divergent Range Market Update and Stock Scan

Oct 12, 2015: 2:47 PM CST

Price impulsed toward the 2,020 (that’s hindsight!) resistance target and retraced lower today.

Let’s update our levels for the S&P 500 Index:

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Stocks developed a Range Day (low volatility session) into the prior highs shy of the 2,020 target level.

Clear visual negative divergences – in Momentum and TICK – undercut the new rally highs.

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

Like Friday, we’re seeing DEFENSIVE money flow as evidenced from relative strength in Staples, Health Care, and Utilities.

Our weakest sector again today is Energy as Crude Oil drops from the $50.00 per barrel level.

Yet Financials and Technology nip at the heels of the defensive sectors, all of which paint a cautious picture.

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:

Sanofi Aventis (SNY), New Oriental (EDU), Electronic Arts (EA), and Priceline (PCLN)

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

2U Inc (TWOU), Keurig Green Mountain (GMCR), Tractor Supply (TSCO), and National Oilwell (NOV)


Corey Rosenbloom, CMT
Afraid to Trade.com

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