We have another Trend Day on our hands as price once again gaps higher and (so far) continues in the direction of the upward movement.
First, start with this morning’s planning post and then compare that with the bullish trend day suggested by the morning update.
We’ll start with the intraday update of the S&P 500:
Like yesterday, we saw a strong opening bullish impulse that created a trend day into the close.
We look to trade retracements or pullbacks along the way and DO NOT try to call a top in a trending market.
Again, reference why the break above 1,945 was significant, as detailed in this morning’s update.
Unlike yesterday, Sector Breadth sends a slightly cautious message despite the bullish action:
Our strongest sectors are the DEFENSIVE sectors of Staples, Health Care, and Utilities though they are joined by strength in Consumer Discretionary (a flip-side image of yesterday’s action).
Sector weakness has developed in Energy which is not necessarily a bad sign for the market.
Let’s shift our attention to bullish-trending stocks for potential buy-trades into the close:
NetApp Inc (NTAP), Amgen (AMGN), Molson Coors (TAP), and Mohawk Industries (MHK).
We actually do have strong downtrending potential candidates today:
Nabors Industries (NBR), Baker Hughes (BHI), National Oilwell Varco (NOV), and Halliburton (HAL).
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