September 3 Expected Rally Market Update and Stock Scan

Sep 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 morning.

Will the bounce continue?  Or have we hit a key resistance target level and that’s all we get?

Let’s chart the levels and possible outcomes here:

Again, start with yesterday’s mid-day planning update to see how I clearly plotted an upside likely pathway for price – and we see that move (and higher) today.

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A V-Spike Reversal late yesterday just above 1,900 set in motion the two-day (so far) rally higher above the Fibonacci Grid.

Priced traded all the way back to fill the downside gap near 1,970 from August 31.

At this point, we see negative divergences into today’s highs and a focus on the 1,960 and 1,945 levels here.

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

Here’s another quote from yesterday’s mid-day update:

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

With broad participation, it suggests strong bullish money flow and the potential …  for additional bullish movement.

We’re still seeing across the board bullishness with all but three sectors above the 80% line.

Our weakest performer today is Health Care, followed by Energy.

The huge, strong bullish performance in defensive Staples and Utilities should give us caution, so we’ll be less bullish than we were yesterday.

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:

Reynolds American (RAI), Vector Group (VGR), Las Vegas Sands (LVS), and Hasbro (HAS)

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

Catalent (CTLT), Five Below (FIVE), Exact Sciences (EXAS), and Caterpillar (CAT)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “September 3 Expected Rally Market Update and Stock Scan”

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