Three Surprisingly Bearish Breakdown Stocks on the Big Bullish Day
If you looked at the stock market’s strength and new intraday high today, you’d likely think all was well with the stock market.
In fact, three major stocks in the S&P 500 surprised us with big intraday bearish action today and it warrants your attention.
Let’s pinpoint the surprising bearish liquidation action hidden with the bullish price action of the broader market:
Perhaps the least surprising of today’s bearish stocks was General Electric (GE) which closed down 2%.
Shares on the daily chart remain in a downtrend and price triggered a retracement sell signal on the underside touch of the falling 50 day EMA.
Volume increased on today’s sell session.
Next up is Coca-Cola (KO) which also fell 2% today on a price breakout action.
Shares initially held support at the $45.50 level until today when traders liquidated positions, collapsing the price toward the prior swing low.
It took just over one week to eliminate the upward price action that developed since July.
Shares are now in a sideways trading range with bearish undertones.
Finally, Proctor and Gamble (PG) surprised us with a second big 2% sell-session.
Shares fell sharply from the $94.00 high on a lengthy negative volume divergence.
Sellers continued their campaign with a big sell session similar to that of September 21.
Continue studying these names as you do your evening analysis, noting that many traders may miss these bearish shadows on an otherwise bright bullish day.
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Corey Rosenbloom, CMT
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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”