Wake Me Up When The Range Day Ends Market Update and Stock Scan March 27

Mar 27, 2015: 1:58 PM CST

Wait – was the market open today?  So far nothing’s happened.

I’m kidding but that’s not far from the truth as today has devolved into a low volatility tight range day.

Let’s dive inside the sector and stock action and get away from this boring price action in the S&P 500 index.

There’s not much to say about the sideways action which has taken the form of a triangle.

Don’t guess in which direction price will break; instead note the level and join the buyers/bulls on an upside break above 2,060 or the bears on a breakdown under 2,057.

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

There are pockets of strength… but unfortunately they send a general bearish message.

Relative Sector Strength today comes from Staples, Health Care, and Utilities (defensive names).

Weakness occurs in Financials and Energy.

It’s a sign of defensiveness – at least in terms of money flow – when money focuses on the ‘bearish’ sectors.

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

Olin (OLN), Carnival (CCL), Biomarin (BMRN), and Royal Caribbean (RCL).

Potential downtrending candidates exist in stocks showing relative weakness today:

Starwood (STWD), Toronto-Dominion (TD), Valero Energy (VLO), and Tesla Motors (TSLA)

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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).

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  1. Big Bullish Breakout Market Update and Trending Stock Scan | Afraid to Trade.com Blog Says:

    […] Breakout Market Update and Trending Stock Scan Mar 30, 2015: 1:21 PM CST If Friday’s triangle range day session (see update) was boring, today’s expected breakout is thrilling and has rewarded those who were patient, […]