The Divergences are Working July 25 Market Update

Jul 25, 2014: 11:59 AM CST

I’m actually a little surprised that the market is falling like it “should” be doing, or at least as was highly logical given the negative divergences at the highs.

Start by refreshing your perspective from yesterday’s “S&P 500 Gasping at New Highs with Clear Negative Divergences” update which sets the stage for today’s expected sell-day.

Here’s the updated S&P Intraday Chart:

For additional planning, be sure to view the broader picture updates from the past sessions:

S&P 500 Gasping at New Highs with Clear Negative Divergences

SP500 Update for a Fibonacci Level Planning Grid

S&P 500 Update and Level Planning July 22

We note the sharp (and highly logical/expected) sell-swing down against the 1,990 level to the spike-reversal (initial) target of 1,975 (today’s low so far).

We’ll be monitoring any additional bounce up off this level and otherwise continuing our short-sell/bearish logic on a trigger-break under 1,975.

We’ll also be prepared for “alternate thesis breakout” planning should buyers once again flood the sellers, triggering a short-squeeze.

Now, let’s shift our attention to bullish-trending stocks for potential buy-trades the rest of the day:

Verisign Inc (VRSN), LyondellBasell (LYB), Tenet Health Care (THC), and Black and Decker (SWK).

Bearish potential trend day continuity stocks include the following candidates:

AON, Chubb Corp (CB), March and McLennan (MMC), and AutoNation (AN).

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Corey Rosenbloom, CMT
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