Support Bounce Market Update and Stock Scan for Oct 14

Oct 14, 2014: 1:19 PM CST

The question today remains “Will we see an actual bounce or will we see yet another repeat of the end-of-day collapse outcome?

We’ll start with our chart of the S&P 500 for key clues:

The pattern has shown us intraday bounces or rallies up off the falling trendline, only to be met with selling pressure into the close to continue the intraday downtrend.

That’s the probabilities we’ll be balancing in today’s session as we see a rally up into the 1,900 target but a retracement down against the trendline and 1,900 confluence (our focal point).

We’re ‘bullish above this level’ and otherwise bearish beneath it.

Sector Breadth reveals a Strong Bullish perspective:

Finally, Sector Strength clearly appears in the Offensive or Bullish sectors like Financial sand Industrials and we’re seeing Sector Weakness in the “Defensive” names like Staples and Health Care.

Generally, this is a sign of bullish money flow into the market as traders seek “Risk-On” positions.

Aggressive traders may look  to play bullish stocks into the close:

ProLogis Inc (PLD), Deere (DE), Consolidated Edison (ED), and Essex Properties (ESS).

Otherwise, bearish candidates include the following downtrending intraday stocks:

Tyco (TYC), Gilead Sciences (GILD), Autodesk (ADSK), and Zimmer Holdings (ZMH).

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Corey Rosenbloom, CMT
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