Range and Reversals Intraday GDP Market Update and Stock Scan May 29

May 29, 2015: 2:40 PM CST

Today’s session allowed for stable range trading with divergences into the reversal high and low.  It’s a great example so be sure to use it as a reference.

Let’s take a look at the current picture and plan the next step:

If you’re a fan of trading divergences and intraday reversals, today was the session for you!

Note the swing down into the 2,105 index level on positive dual divergences and the big reversal back to the 2,118 zone.

Also note the lengthy negative divergence that built into this spot and the reversal candle (10:30am PST) that signaled a likely reversal back to the lows.

Finally, we’re seeing a rally up into the close off ANOTHER positive divergence as shown into 2,105.

We’re still playing neutral within the ongoing sideways range on the Daily Chart.

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

Though our Breadth Grid changed as the market played bull/bear ping pong today, the current snapshot is quite bearish.

Energy/Oil is spiking higher today (a logical bullish breakout in Oil on the intraday frame) as noted in last night’s member report.

Outside Energy, the three strongest sectors at the moment are the BEARISH ones – namely Health Care and Utilities.

We’ll continue our cautious approach given the movement of sector money flow.

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Humana (HUM), Cigna (CI), Discovery (DISCA), and Anthem (ANTM)

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

Old Dominion (ODFL), SK Telecom (SKM), Astrazeneca (AZN), and Kroger Co (KR)

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “Range and Reversals Intraday GDP Market Update and Stock Scan May 29”

  1. Zain Says:

    If one is able to figure out key levels in Forex correctly then he will be able to succeed without any fuss. I am not that good but I am still practicing it quite often and thinks to this lovely site’s guide and my broker OctaFX, it’s all very good as I am able to practice regularly on their Champion demo contest, it has 1000 prize pool from which we can trade and also they have got brilliant customer service that’s 24 hours active.