Sept 18 Breakdown Market Update and Interesting Stock Scan

Sep 18, 2015: 1:28 PM CST

After yesterday’s Fed Day update, stock prices surged into the 2,020 S&P 500 target and then collapsed powerfully down away from this level.

We’re down 60 points in the S&P 500 from this mid-day spike reversal high and falling lower.

Let’s update our levels and plan the remainder of today’s session:

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Again, there was a zero percent chance of a rate hike this session and the Fed followed-through with expectations.

From the initial rally, price collapsed toward a lower support trendline from the higher timeframe.

See this morning’s “Triple Index Level Planning Update” for additional commentary.

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

I wanted to bring over a quote from yesterday’s Breadth Planning section:

While we’ve seen strong bullish money flow all week, today’s session gives us pause; the strongest sectors today are clearly the Defensive Groups of Staples, Health Care, and Utilities.

That’s not what you want to see in a strong bullish money flow environment – it suggests caution.

Caution was absolutely correct – since the update, price has collapsed and one of the key clues ahead of the fact was the weak performance (despite new rally highs) in our Sector Breadth Chart yesterday.

At this point, all sectors are near zero breadth with Utilities again remaining the strongest sector.

In fact, at this moment 100% of Dow Jones stocks are negative on the session.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of

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

Aqua America (WTR), Bristol-Myers SQUIBB (BMY), Astrazeneca (AZN), and AbbVie (ABBV)

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

Las Vegas Sands (LVS), Diamond Offshore (DO), Mosaic (MOS), and Donaldson (DCI)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Sept 18 Breakdown Market Update and Interesting Stock Scan”

  1. Pervez Says:

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