Bouncing Bull Market Update and Big Stock Scan April 2

We all survived April Fool’s Day!

Yesterday saw an intraday bottoming/reversal process and today we’re seeing the logical up-rally higher.

Let’s dive inside action and note key levels and the trending stocks of the day:

Take a moment to review the prior two posts that set the stage for today’s bullish reversal:

Key Support Level Planning for April 1 (US Stock Market Indexes)

Two S&P 500 Triangles and Level Planning

Also, I wrote this last night to members:

The Breadth Divergence does suggest the outcome here will likely be another bullish inflection up off the 2,045 target support level. If so, continue playing long above 2,050 as bears “stop out” and buy-back to cover, joining with buyers/bulls, both of which will help push the indexes higher.

Price “should” move up off the 2,045 level – away from this trendline price support – and toward the 2,080 level again. That’s the clear, logical dominant thesis given the data we have right now.

Today’s bullish action was indeed the dominant thesis and we play the 2,070 pivot as noted.

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

All Sectors are Bullish (above the 50% Level) and we’re not seeing much differentiation between sectors.

Thus money flow is bullish in the index and confirmed by the Sector Strength Grid.

We have potential bullish trend continuation plays in the following stocks from our scan:

Telephone/Data (TDS), Globe (GSM), CarMax (KMX), and Expedia (EXPE)

Potential downtrending candidates exist in stocks showing relative weakness today:

Valero Energy (VLO), Holly Frontier (HFC), Western Refining (WNR), and Tesoro (TSO)

I’m excited to announce that I’ll be joining six other great speakers at a Two-Day intensive boot camp in May!

Check out the details and start planning the trip today to join us in May.

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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