Reversal and Market Update with Stock Scan for September 12

Sep 12, 2014: 1:18 PM CST

The intraday downtrend continued and price traded down from the 1,997 inflection level mentioned in yesterday’s mid-day planning post.

Let’s update our S&P 500 level chart, highlight breadth, and see the strong intraday trending stocks right now.

Price continued the downtrend in motion through September and pushed to another (small) new price low during today’s sell-session.

We’ll focus on the session low and look for additional downtrend action should sellers continue their activities.

However, note that price has a tendency to bounce sharply higher – a retracement – when it interacts with the lower trendline which is near today’s low.

Be on guard for another sudden bullish rally should it occur.

Our Breadth Chart is a little surprising given the strength of the sellers:

What’s our strongest sector on this sell day?  Financials.  Which is the weakest?  Utilities.

“That’s not right!” you may say and you would be correct.

While price action is clearly bearish, internal Sector Rotation or money flow actually paints a bullish classical picture.

That’s because strength is showing in the “Offensive” sectors while weakness appears in the Defensive sectors.

If anything, it’s something to temper any super-bearish bias of today’s price action.

We actually do have very strong trending stocks at the moment:

Best Buy (BBY), Staples (SPLS), ICE Exchange Group (ICE), and Yahoo (YHOO) again.

Strong  bearish downtrend continuity stocks include these candidates:

Ventas (VTR), ProLogis (PLD), Public Storage (PSA), and Boston Properties (BXP).

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).

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