Here we go again! The market continued its slide lower – as was widely expected – and so far is creating another trend day lower.
However, not all is bearish in the market, as seen from our intraday stock scan.
Let’s jump into today’s update with an update on the S&P 500:
I expanded more detail Monday’s “Planning the Pullback in the US Stock Market” so be sure to view the higher frame support/inflection level which broke – and price continued trading lower.
The failure to hold the 1,994 level resulted in a continuation of the ongoing sell-off, and now the index not only broke 1,990 but now trades into the 1,985 level.
Yes, there are positive momentum divergences, but we must continue to follow price during the “creeper” or steady sell-off as price continues its logical higher timeframe retracement.
Sector Breadth is not quite as remarkable as yesterday:
The picture is mixed, with today’s sector strength in the Technology and Energy sectors and relative weakness across the board (especially Financials and Staples).
As I mentioned, not everything is bearish today – here are our bullish stock candidates for the session:
CF Industries (CF), Patterson Companies (PDCO), Apple (), and Biogen (BIIB).
I posted on a triangle pattern in Apple shares yesterday, and price did break through the upper trendline to continue the trend.
If instead you believe the market will continue its sell-swing lower into the close, focus on these bear candidates:
CarMax (KMX), Medtronic (MDT), ADT Corp (ADT), and Northrup Grumman (NOC).
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