September 2 Bouncing Market Update and Big Stock Scan

Sep 2, 2015: 12:54 PM CST

Today’s session saw a bullish reaction higher to a key intraday resistance level.

Will price break through?  Or will 1,935 be today’s high.

Let’s chart the levels and possible outcomes here:

A V-Spike Reversal late yesterday just above 1,900 set in motion today’s bullish rally toward the 38.2% Fibonacci Target area (1,935).

That’s the level into which the market gapped and then traded lower to find support at 1,920.

At this point, we’re focusing our attention intraday on the 1,935 level for a possible bullish breakout and price pathway movement up toward 1,945 then possibly even higher than that.

Note the green arrow which plots this bullish “bounce” thesis.

Otherwise, the market is neutral between 1,930 and 1,935 and would develop a bearish pathway under 1,930 then 1,925.

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

One argument for bullish prices yet to come is from today’s Sector Breadth Chart.

We’re seeing across the board bullishness (as of right now) with all but three sectors above the 80% line.

The weakest sector is Utilities and the second weakest is Energy.  This is also generally a bullish sign that the defensive Utilities group is the weakest performer.

With broad participation, it suggests strong bullish money flow and the potential – though not guaranteed – for additional bullish movement.

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

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

Alaska Air (ALK), Marriott (MAR), Lockheed Martin (LMT), and McDonald’s (MCD).

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

Axiall Corp (AXLL), Ambarella (AMBA), comScore (SCOR), and Interactive Brokers (IBKR)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “September 2 Bouncing Market Update and Big Stock Scan”

  1. September 3 Expected Rally Market Update and Stock Scan | Afraid to Trade.com Blog Says:

    […] 3, 2015: 12:42 PM CST Odds strongly favored a continuation of the bullish movement from yesterday (see yesterday’s mid-day update and the planning chart with the green arrow pointing higher) and that’s precisely what happened this […]

  2. September 3 Expected Rally Market Update and Stock Scan | Margin of Safety Says:

    […] strongly favored a continuation of the bullish movement from yesterday (see yesterday’s mid-day update and the planning chart with the green arrow pointing higher) and that’s precisely what happened this […]

  3. Jacky Says:

    Coming at the end of the week, it’s fair to say this bounce is just temporary and we should see things changing quickly, but the main point is to stick to basis instead of changing our approach into gambling. I only prefer long term trading and that’s what I do with OctaFX broker since I can get 50% bonus here which I can use, so that allows me to be fearless and do what I believe in instead of holding myself.