After yesterday’s Swiss Franc surprise (see the “Aftermath Update” post from this morning), the US S&P not only stabilized but is showing signs of a bullish short-term reversal.
We’ll start our update and stock scan with our S&P 500 level chart:
Mainly, we’re focusing our attention right now on the 2,010 level for a possible breakout and bullish surge through “Open Air” toward 2,020 or 2,027.
For now, focus your attention on the 2,005 to 2,010 neutral zone with the bull/bear levels in play.
Note the lengthy positive momentum and TICK (internal) divergence, suggesting a possible rally.
What is Sector Breadth revealing about today’s session? Let’s discover together:
All sectors are bullish today with Energy (along with Technology and Health Care) showing relative strength today.
When all sectors are strong – or weak – there’s not much we can do except see this as a sign of strength.
We have potential bullish trend continuation plays in the following stocks:
Altisource (ASPS), BP, Activision (ATVI), and Sanofi Aventis (SNY).
Potential downtrending candidates exist in stocks showing relative weakness today:
Vornado (VNO), Myriad (MYGN), Caterpillar (CAT), and Align Tech (ALGN).
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