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