VSpike Reversal Intraday Market Update and Focused Stock Scan

Mar 26, 2015: 12:44 PM CST

The selling pressure continued today yet a strong V-Spike Reversal off the 2,050 level may signal a short-term price bottom.

Let’s update our S&P 500 chart and highlight the strongest – and weakest – stocks on the session:

A slight positive divergence occurred on a V-Spike Price Reversal this morning off the 2,050 level, resulting in an “ABC” retracement toward 2,060.

We’re monitoring the 2,063 and 2,057 levels as a neutral pivot with a bearish “pro-trend” bias under 2,055 and a reversal bullish bias on a breakout above the 2,063 level (and 2,065).

Note the upside targets along with the downside retest – and likely break under 2,050 – should the intraday downtrend continue.

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

At the moment, the market is neutral/bearish and the Sector Grid is neutral/bearish in its signal.

All sectors – with the exception of Discretionary and Industrials – trade near the 40% Breadth Level which is just beneath the 50% “halfway” mark.

Today’s session is a bearish one – so far – and there’s no magic signal otherwise from our Breadth Grid.

Perhaps there is one bullish sign of life – the strongest sector today (not by much) is Financials.

Here’s a new addition to the daily market update – the Big Point Winners and Losers Grid:

Keep in mind that this simple scan has a bias to high-priced stock names.

We have potential bullish trend continuation plays in the following stocks from our scan:

Novo-Nordisk (NVO), Starwood Hotels (hot0, Red haT (RHT), and Signet Jewelers (SIG)

Potential downtrending candidates exist in stocks showing relative weakness today:

SanDisk (SNDK), Melco (MPEL), Werner (WERN), and American Express (AXP)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “VSpike Reversal Intraday Market Update and Focused Stock Scan”

  1. Javid Says:

    I really hate the market when this happens as it’s very tough to predict situations like these, so that’s why most including me are hardly prepared for this. I work with OctaFX broker and they are one of the greatest companies of all time, so with them I am always aware of any possibility in market due to their superb free analysis service, it is provided by highly qualified team of experts but the best thing for us is that it’s completely free of cost.