Oct 9 Midday Update and Our Trending Stock Scan

Oct 9, 2015: 1:28 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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Here’s a quote from last night’s member strategy planning report:

“Be cautious into the 2,020 target which is a Round Number pivot and the prior “spike reversal” high from the Fed Day announcement last month.”

So far, that’s precisely what occurred as price spike above the 2,000 pivot into the next target level at 2,020.

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):

We’re seeing DEFENSIVE Money Flow as evidenced by the strong (relative) performance of Staples and Health Care which are traditionally defensive groups.

Another sign of weakness comes to us from the Financial Sector where 6% of stocks are positive now.

With the price action into resistance and bearish sector money flow, let’s be defensive here.

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:

Cyberonics (CYBX), KapStone Paper (KS), American Airlines (AAL), and Autodesk (ADSK)

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

Cooper (COO), Northern Tier Energy (NTI), Panera Bread (PNRA), and CME Group (again).

Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Oct 9 Midday Update and Our Trending Stock Scan”

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