And now for something a little different!
Today’s session sported a strong Bullish Reversal in the S&P 500 from a “Rounded Reversal” and bullish divergence pattern.
Let’s update our chart and note the key trending stocks of the day.
I highlighted the positive market internal divergences to members last night (and in this morning’s briefing with TradeStation) and indeed, the market responded with a larger-than-expected bullish reversal.
Price achieved the minimum targets and actually traded rapidly above the 1,997 prior high and then the 2,000 “round number” index level.
The market is caught in a “short-squeeze” or positive feedback loop of bullish action and may continue in this direction as long as the index remains above the focal point 2,000 (where bears will trigger stop-losses at higher levels).
Sector Breadth is Bullish across the board:
There’s not much to say about today’s Sector Breadth which reveals bullish dominance in all sectors.
The only negative note is that the Defensive Sectors are the top performers of the day – not by much however.
Potential bullish trend day continuation (buy retracements) stocks include the following:
AutoZone (AZO), CVS (CVS), Gamestop (GME), and Archer-Daniels-Midland (ADM)
You might not be surprised to learn that we have no stocks on our bearish downtrending scan list today. Go bulls!
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