Oct 21 Another Bull Trap Reversal Update and Stock Scan

Oct 21, 2015: 2:00 PM CST

That’s two days in a row of a failed breakout attempt or a “Bull Trap” intraday reversal.

Hopefully we learn the lessons from the prior session when trading today.

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

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Here’s a key planning quote from last night’s report:

“Stock prices – given negative divergences in volume, momentum, and internals in an extended run – have much higher probability of falling (like that of mid-October) “down away” from the 2,035 level.”

So far, that’s precisely what we’re seeing in today’s session, despite a little bullish trickery in the morning (and maybe into the close).

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

We’re seeing the Defensive Sector Groups outperform today as Staples is the strongest sector.

While Industrials (sector) is the one bullish hold-out, the other strong sectors include Health Care and Utilities.

As with price, sector money flow gives us a caution signal mid-day.

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:

Syngenta (SYT), Solarwinds (SWI), Sony (SNE), and General Motors (GM)

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

VM Ware (VMW), EMC Corp, Chipotle (CMG), and Humana (HUM)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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  1. Failed Breakout Attempt on Wednesday Says:

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