September 2 Market Update and Daily Stock Scan

Sep 2, 2014: 1:28 PM CST

After a holiday weekend, the market returned with a volatile Tuesday!

Let’s chart the broader S&P 500, note key levels, and then highlight our trending stock scan of the day.

I’ll add more detail to the chart for the Daily Membership but for now, we’ll focus on the small intraday rectangle (highlighted) developing near the 1,995 and 2,005 levels in the S&P 500.

A ‘surprise’ break above simply continues the trend and short-squeeze in motion; however, logic and indicators do suggest a tip in the probability to favor a downward retracement and bearish price pathway under 1,995.

Sector Breadth is interesting this afternoon:

Breadth is interesting because two main sectors – Energy and Utilities – have zero stocks (in the S&P 500) trading positive on the session at this moment.

Our strongest sector is Industrials followed by traditionally bullish Financials and Consumer Discretionary.

Usually on a bearish or sell-session like this morning, you would see strength in Utilities and Staples with weakness in the other sectors but that’s not the case today.

While we turn away from Breadth, we can focus on potential bullish trend continuation candidates:

Staples (SPLS), Regeneron Pharma (REGN), Ball Corp (BLL), and popular Facebook (FB).

Downtrending (bearish) intraday candidates include the following stocks:

SanDisk (SNDK), Valero Energy (VLO), Micron Tech (MU), and Wynn Resorts (WYNN).

Corey Rosenbloom, CMT
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