June 5 Stable Market Update and Trending Stock Scan

After yesterday’s strong sell session, price stabilized and traded in a range today.

Is a reversal building off the 2,090 target?  Let’s chart the evidence.

Following the (slightly) better than expected Jobs Report, price broke fully to the 2,090 level and then a V-Spike Reversal propelled price back to the 2,100 level.

From there, price traded within a consolidation range between the 2,090 and 2,100 pivot points.

Positive divergences off a higher timeframe support target suggest a bullish reversal up away from 2,090 and above 2,100 but price will be the judge – not probabilities or divergences.

Note the green breakout bullish (reversal) zone above 2,100… and the bearish breakdown sell-zone under 2,090.

Let’s see what our Breadth Chart reveals about current market strength (or weakness):

Like the market, we’re seeing stable – bullish – Money Flow in our Sector Grid.

The strongest sectors are the Bullish/Risk-On names – including Energy – while the weakest sectors are the defensive names.

This supports the logic that odds favor a rally up off the 2,090 level and above 2,100.

Though again, price will cast the deciding vote and our trades will reflect the real-time price action.

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Qihoo (QIHU), Under Armour (UA), KITE Pharma, and Infoblox (BLOX)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Altria (MO), Questar (STR), Reynolds American (RAI), Dr. Pepper Snapple (DPS)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


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