We have another sell session in motion, let’s take a moment to highlight key levels, read breadth, and find opportunities in the top trending stocks for the day.
We’ll start as usual with our S&P 500 level chart:
Be sure to start with this morning’s update on “Support and Resistance Planning for the S&P 500 and Dow Jones” which highlights the higher frame breakout trigger levels.
Right now, we’re watching a Trend Day develop down away from the 2,050 index level.
After a sell-swing lower, the 2,035 reference level became the mid-day resistance.
At this point, we’re simply seeing a swing lower to test 2,025.
For now, focus on 2,025 and 2,035 and the short-term (slightly bearish) range between them.
What is Sector Breadth revealing about today’s session? Let’s discover together:
As would be expected, Sector Breadth is bearish with the ’strongest’ sector (Health Care) in the Defensive Group.
Materials follows closely behind but sector breadth readings of 38% and 32% respectively cannot be seen as “strength.”
The picture confirms the bearish money flow but it’s surprising that zero Utility stocks are positive today.
We have potential bullish trend continuation plays in the following stocks:
LuLuLemon (LULU), Rangold Resources (GOLD), Bristol-Myers (BMY), and Royal Gold (RGLD).
Potential downtrending candidates exist in stocks showing relative weakness today:
Tiffany (TIF), SanDisk (SNDK), Universal Health (UHS), and Tenet Health (THC).
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