March 11 Support and Market Update with New Stock Scan
Today’s session continued the selling pressure of yesterday, but the bears were less relentless.
Buyers stepped in to support the market – at least twice – into the 2,040 S&P 500 pivot.
Let’s update our key levels, highlight the divergence, and of course note trending stocks today:
Our critical support pivot (intraday) will simply be the 2,040 index level.
Look for a breakout rally (short-term) should price break firmly above the 2,047 and 2,050 levels.
It could lead to a retracement back to the 2,060 level (at least for an upside target).
We note the lengthy positive divergence and rising TICK Channel as bullish support-bounce evidence.
Otherwise, this market is bear, bear, bear or sell, sell, sell under the 2,040 pivot.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Buyers have hope from the positive signal from our Sector Rotation/Strength chart.
Our weakest sector today (when the market collapsed) was the strongest sector today – Utilities.
All other sectors are stable with Financials and Energy – along with Health Care – showing strength.
We have potential bullish trend continuation plays in the following stocks from our scan:
Salix (SLXP), Tribune (TRCO), Toll Brothers (TOL), and First American Financial (FAF)
Potential downtrending candidates exist in stocks showing relative weakness today:
Tyson Foods (TSN), Wal-Mart (WMT), BHP Billiton (back again – BHP), Altria (MO)
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
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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