Relief Rally Continues Market Update and Stock Scan July 16

Jul 16, 2015: 12:32 PM CST

The Relief Rally in stocks continued without ceasing today, taking the index shy of another all-time high.

What’s going on now and what levels are important? Let’s see:

Our ongoing Broader Narrative continues to be successful as the market simply continues to trade higher in the ongoing uptrend.

As we’ve been highlighting every day to members, price simply developed multiple Trend Days in an ongoing short-squeeze reversal up away from the higher timeframe support level (the bottom near 2,040 in the @ES).

At the moment, we’re watching 2,110 (@ES) and upwards toward 2,120 for short-term intraday plays.

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

The weakest two sectors in another bullishly dominated day are the Materials and Energy sectors.

All other sectors enjoy strong positive breadth, though Staples (a defensive name) along with Utilities reveal today’s relative strength leadership.

That’s actually NOT a resounding bullish signal (given that strength is in the defensive names today).

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

Altria (MO), Philip Morris (PM), Netflix (NFLX), and Tesoro Corp (TSO)

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

Sherwin-Williams (SHW), Sonoco (SON), Garmin (GRMN), and Under Armour (UA)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Relief Rally Continues Market Update and Stock Scan July 16”

  1. July 17 Flat Market Update and Big Mover Stock Scan | Afraid to Trade.com Blog Says:

    […] Energy, and Utilities (which were yesterday’s leaders) are the weakest sectors […]

  2. Jahangir Says:

    The trend obviously looks very much bullish, so if we want to go with this rally then it’s a risk as u-turn is always possible and it’s a huge risk to go with this. I am working with OctaFX broker and it’s a terrific company that allows me to perform well especially with their low spread of 0.2 pips for all major pairs while there is also awesome customer service available 24/5, it helps us a lot to be calm.