October 2 VSpike Reversal Intraday Update and Scan

Oct 2, 2014: 1:20 PM CST

Retracement or V-Spike Reversal?

So far, buyers aggressively defended the 1,930 index level and now short-sellers may be on the run after an impressive victory – at least for today.

Let’s update our S&P 500 chart, note Sector Breadth, and focus on the top trending stocks of the session:

Price plunged down away from the 1,970 after yesterday’s break and stocks continued the slide on a sharp and impulsive sell-off.

Now, we’re monitoring a bounce from a V-Spike Intervention Reversal and we focus our attention today on the 1,950 pivot.

Carefully watch any further rally up above this level, else play cautiously into a potential intraday resistance zone.

Given the V-Spike Reversal, Breadth is more stable and positive today:

Unlike yesterday’s devastatingly bearish breadth, we see some recovery in the sector breadth picture, yet Utilities still command the top spot of the day.

Energy and Materials are the day’s weakest sectors so far while strength emerges in Financials and Discretionary.

Bullish retracement candidates include the following:

Michael Kors (KORS), Fossil Group (FOSL), Kinder Morgan (KMI), and Autodesk (ADSK).

Finally, bearish downtrend continuation candidates include these stocks:

Tyco (TYC), General Dynamics (GD), JP Morgan (JPM), and Garmin (GRMN).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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