Short Squeeze Continues Market Update and Stock Scan April 20

Apr 20, 2016: 1:49 PM CST

The pattern aggressive dip-buying continued as bears once again lost money via an extended short-squeeze.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

In the 5-min micro-chart above we see three intervention reversals off steep pullbacks as the trend rose.

We’re seeing literal domination by the bulls/buyers against the sellers as money aggressively and desperately floods into the equity market, blowing over all evidence and logic to the contrary.

This is our Alternate Thesis we’ve been discussing in the membership and we’re seeing the textbook “larger move in the opposite direction” when price surprises the majority of traders.

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

If it weren’t so late in the rally, we’d see the chart above as extremely bullish given that all Risk-On (offensive) sectors are strong while the three Risk-Off (defensive) sectors – except for Health Care – are weak.

That’s classic bullish of offensive (Risk-On) money flow across sectors and it suggests even higher prices.

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:

Discover (DFS), VMWare (VMW), Lexmark (LXK), and Manhattan Associates (MANH)

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

Alere (ALR), TE Connectivity (TEL), Coca-Cola (KO), and WEC Energy Group

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Corey Rosenbloom, CMT
Afraid to Trade.com

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