September 11 Midday Market Update and Stock Scan

What levels remain important for the S&P 500, what does Breadth suggest about today’s price action, and which stocks are our pro-trending candidates of this important session?

Let’s start with the S&P 500 and pinpoint the trend and key levels for planning:

The 1,997 level – which is roughly the 50% Fibonacci Retracement as drawn – served as yesterday’s resistance high and price fell just shy of testing this level again during today’s session (so far).

We’ll thus continue reference the 1,995 and 1,997 short-term resistance level as the key pivot for today’s session.

We’re bearish under this level as price continues to fall down away from this level to continue the intraday downtrend already in motion.

Not to be outdone, Breadth has something interesting to say today:

We’ve seen a few pictures of mixed breadth readings over the last few sessions and today is no exception.

What jumps off the chart at you?  It should be the performance of the Utilities sector where 90% of stocks are positive right now.

All other sectors show roughly 50% positive performance except our weakest performer of the day, Health Care.

Generally, we’d say this was bearish except for the fact that Staples and Health Care (also in the Defensive category with Utilities) are today’s weakest sectors.

Potential bullish trend day continuation (buy retracements) stocks include the following:

Pinnacle West (PNW), Public Services (PEG), International Paper (IP), and FedEx (FDX).

Bearish “intraday reversal” or downtrend continuity stocks include these candidates:

O’Reilly Auto (ORLY), McKesson (MCK), AmeriSourceBergen (ABC), and Thermo Fisher Scientific (TMO).

Corey Rosenbloom, CMT
Afraid to Trade.com

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