Selloff Market Update and Trending Stock Scan March 25

Mar 25, 2015: 1:24 PM CST

We have a second sell-session in a row as the S&P 500 moves down from the 2,100 key level.

Let’s update our S&P 500 chart and highlight the strongest – and weakest – stocks on the session:

As the S&P 500 failed to hold the 2,100 level, an slow-moving avalanche of selling pressure (liquidation) crept the market lower.  Today’s session sees the avalanche moving quicker mid-day into the current 2,070 pivot level.

We’re using 2,070 – the 61.8% Fibonacci Retracement (not drawn) – as our intraday potential reversal pivot.

The market would be intraday bullish above the 2,075 level and continuation/breakdown bearish under 2,070.

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

There’s nothing at all surprising about weak sector breadth in the context of a sell session.

However, we do see a huge surprise on the chart coming from the strong – almost 100% positive – Energy (XLE) sector which is today’s shining bullish star.

If you’re looking to play bullishly into the close on a reversal, focus on Energy.

Otherwise, pick a sector and trade from the short-side, particularly Technology and Financials.

Here’s a new addition to the daily market update – the Big Point Winners and Losers Grid:

We have potential bullish trend continuation plays in the following stocks from our scan:

Halliburton (HAL), Marathon Oil (MRO), Schlumberger (SLB), and Valero Energy (VLO)

Potential downtrending candidates exist in stocks showing relative weakness today:

Apollo Education (APOL), Nationstar (NSM), Booz Allen Hamilton (BAH), and Texas Instruments (TXN)

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries 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 “Selloff Market Update and Trending Stock Scan March 25”

  1. foreign exchange rates Says:

    Fantastic post however I was wondering if you could write a litte more on this topic?
    I’d be very thankful if you could elaborate a little bit
    more. Thank you!