Oct 16 Wall of Resistance Market Update and Stock Scan

Oct 16, 2015: 12:50 PM CST

After a strong bullish rally sent the market higher yesterday, we’re seeing price meet a wall of resistance.

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

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Members expected the bullish turn yesterday due to multiple positive divergences into a support target.

Today’s session continued the bullish rally with a breakout toward our 2,030 target.

However, we’re seeing real-time resistance and now negative divergences undercut the rally to new highs.

Caution would be key here as we close out this trading week.

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

Sector Breadth once again is mixed with a slightly BEARISH perspective.

Our strongest two sectors are Staples and Health Care, two defensive names, but we’re also seeing strength in Financials which is a bullish group.

Our two weakest sectors are Industrials and Energy followed by Materials.

Utilities is also a strong performer, and because strength is focused in the defensive names, we’ll be cautious.

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:

Cal-Maine Foods (CALM), Hasbro (HAS), Mattel (MAT), and General Electric (GE)

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

Coach (COH), Kansas City Southern (KSU), Grainger (GWW), and Flur Corp (FLR)

Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Responses to “Oct 16 Wall of Resistance Market Update and Stock Scan”

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    […] 19 Range Day Update and Trending Stock Scan Oct 19, 2015: 2:27 PM CST Friday’s “Wall of Overhead Resistance” continued to play out in today’s Repeat Range […]

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