Rally into Resistance Update and Stock Scan Jan 26

Jan 26, 2016: 3:50 PM CST

Today’s action so far completely erased the bearish action of yesterday, but price still couldn’t break to new highs.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

As I highlighted last weekend to our Intermarket Strategy Members, we took a bearish turn going into 2016.

The 1,900 to 1,905 level is a confluence resistance zone that will serve as a bullish breakout trigger.

However, buyers haven’t been able to push the index into a breakout and thus we respect this level as our key short-term pivot (bear biased beneath; bullish for breakout if above).

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

With the bullish price action, it’s no surprise that all sectors (except Heath Care) are strongly positive today.

There’s no major distinction in the money flow so we respect the bullish “Risk-On” signal so far.

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:

Terex (TEX), Koninklike (PHG), Southern Copper (SCCO), MMM

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

Leidos (LDOS), Polaris (PII), Wright Medical Group (WMGI), and Flir Systems (FLIR)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Rally into Resistance Update and Stock Scan Jan 26”

  1. Kate Says:

    The trend obviously looks neutral there, but then again things can change in blink of an eye. I will not bet on anything but I guess the trend things to bearish. I love long term trading and that’s why I prefer using swap free account by OctaFX broker and there I have no pressure of having to pay overnight charges, so that really works well for me and allows me to be successful easily and makes me highly comfortable as well.