Short Squeezed Bullish Surging Market Update and Big Stock Scan May 8

May 8, 2015: 1:05 PM CST

The trading range continued which meant that today’s session was another expected bullish surge up away from support (which began Wednesday afternoon) toward the prior high target of 2,120.

Believe it or not, the market is doing exactly what it should be doing, at least according to classic analysis.

Here’s where we were, where we are, and what to expect next:

Here’s a snippet from Tuesday evening’s Member Strategy Report that forecast today’s rally:

We’re simply BULLISH as long as price remains above the 2,085 @ES pivot (note the green upside pathway) to keep this short-term trading range active. It targets 2,100 and 2,110 (@ES).

With the logical reversal up off the 2,065/2,070 pivot, we’re again bullish to target 2,090 (achieved today), 2,100 (magnet), and ultimately 2,120 again for the bullish ‘bounce to continue the range’ thesis. It will remain the dominant thesis for now.

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Simply stated, we in the membership expected an upward swing and the market gave it to us precisely as expected.

The Jobs Report was the catalyst that helped the market (buyers) achieve these upside goals and we rest into the upper resistance level which becomes the new focus for our trading strategies.

See this morning’s updated post on the Three US Stock Market Indexes and the Range.

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

Yesterday’s Bullish Sector Strength Grid built on the “hidden” strength of Wednesday and we now see the result of the positive reversal in money flow.

The bullish money flow continued and today, we have confirmation with the bullish price rally as every single sector is showing strength – all except Utilities are above the 80% Breadth level which reflects the absolute dominance of buyers today.

Unless there’s some sort of surprise, this bullish money flow is likely to continue.

You’d want to play this bullish action in stocks showing relative strength, like our top stocks today:

Tata Motors (TTM), Tableau Software (DATA), AOL, and Unilever (UN)

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

Pepco (POM), Monster Beverage (MNST), Cerner (CERN), and NVidia (NVDA)

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Short Squeezed Bullish Surging Market Update and Big Stock Scan May 8”

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