Today saw a repeat event where the morning started with a quick sell-off yet buyers intervened with a recovery event that thrust the market – in a Short Squeeze – to new all time highs.
We’ll update our key simple levels and note trending stocks today:
While yesterday’s session stalled after making a weak new all time high, today’s session (so far) is seeing a powerful rally.
We’ll be monitoring the 2,100 level and now 2,104 for any signs of continuation of the Short Squeeze and financial losses from the bears which are helping propel the market higher (it’s not all bulls out there!).
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
A big hit that buyers could dominate and trigger a Short Squeeze today was yesterday’s positive Breadth chart.
Today, we’re seeing a repeat where the Breadth Chart reveals a strong confirmation of Bullish Money Flow.
The two weakest sectors are Energy and Utilities, though all other sectors are near the 70% Breadth Line.
We have potential bullish trend continuation plays in the following stocks from our scan:
Mohawk (MHK), AbbVie (ABBV), Boeing (BA), and Ralph Lauren (RL)
Potential downtrending candidates exist in stocks showing relative weakness today:
Iron Mountain (IRM), Consolidated Energy (ED), Chubb (CB), Xcel Energy (XEL)
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade