July 8 Sell Swing Intraday Update and Stock Scan

Today continued the expected sell-swing already in motion and price achieved its downside target (see yesterday’s intraday update and level planning to recap the live analysis as it occurred now that we know the outcome).

With price back into a support target level, let’s update our intraday charts and trending stock scan:

The intraday target for the next likely downswing was (and is) 1,960.  Price achieved this level with dual divergences mid-day and now is rallying up off the support level to create a possible bullish “rounded reversal” or trend day that ended into known support.

Watch the price movement above the 1,965 EMA and price pivot (bullish above; bearish beneath 1,965).

It shouldn’t surprise us that Sector Breadth  shows a very bearish picture at the moment:

Similar to yesterday, the strongest sector is the defensive/bearish Utilities sector (97% of stocks are positive right now) followed distantly by Materials and Energy (42% of stocks higher now).

Relative weakness continues across the board (again, the same picture as yesterday).

Let’s turn our attention now to potential bull-trending stocks (relative strength leaders) today:

Defensive Colgate-Palmolive (CL), Duke Energy (DUK), Avalonbay (AVB), and Costco (COST).

Potential downtrending (trend day) candidates include the following stocks:

Trip Advisor (TRIP), Walgreen (WAG), Motorola (MSI), and big name Amazon.com (AMZN).

Join me for a Live Webinar Thursday:

Also, I’m excited to be teaching an educational webinar with Trader Kingdom this Thursday (July 10th) at 3:30pm EST entitled “Stalking the Short-Squeeze: Protection and Profit from Unexpected Events” which will help you increase your ability to plan market events (and trading strategies) like this.

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).