High Volatility Market Update and Stock Scan Feb 11

Bycjrosen

Yesterday’s divergences into resistance set the stage for a down-swing – and that’s precisely what happened.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

Yesterday saw a rally into the 1,875 upper resistance target – on negative divergences I highlighted – and the end-of-day activity was a logical sell-swing “down away from” this level.

Today’s bearish opening gap set the stage for a Trend Day down and retracement trades along the way toward the 1,820 target.

From there, positive divergences built the foundation for the rally we’re seeing currently in the volatile market.

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

The picture today – despite all the bearish price action – is less bearish as it seems.

Our two strongest sectors are the Technology and Discretionary “offensive” group, along with Staples.

We’ll be slightly bullish given this picture of Money Flow today.

Take a moment to pull the perspective up – view this morning’s “Sector Strength/Weaknesss” Post.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

TripAdvisor (TRIP), Expedia (EXPE), Cisco (CSCO), First American (FAF)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Bunge (BG), Prudential Financial (PRU), Torchmark (TMK), Lincoln (LNC)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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).

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