Rally Report and Market Update for October 17

Oct 17, 2014: 1:17 PM CST

Price today continued its recovery rally into resistance (see this morning’s update for targets) and now we pause mid-day to check key key levels and highlight the top trending stocks of the session.

Here’s our S&P 500 update and trending stock scan for the day:

Our focal point turns to the underside of 1,900 which is where the market peaked and reversed today (1,898).

We’ll be cautious under this area as price continues to pull back.

Note the lengthy negative TICK (and momentum) Divergences into the underside of 1,900.  This further suggested a sell-off was likely.

Nevertheless, Sector Breadth is Bullish at the moment:

Like yesterday, we see across-the-board bullishness.  Our strongest sectors once again are Materials and Industrials while Utilities turns in the worst performance of the day.

All other sectors continue to show breadth performance near 80% positive.

We finally have uptrending bullish intraday candidates today:

Mead Johnson (MJN), Textron (TXT), Regeneron (REGN), and Alcoa (AA).

Top bearish downtrending candidates include the following stocks:

Urban Outfitters (URBN), AbbVie (ABBV), Capital One (COF), and Health Care REIT (HCN).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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