Perhaps not surprisingly, the stock market pushed yet again to another intraday high today as the non-stop bullish uptrend continued, yet this time we saw a quick retracement down to the rising trendline.
Let’s start with our updated, uptrending S&P 500 intraday chart:
A stable rising trendline pattern contains the progressive higher highs and higher lows and it should be our market reference point until proven otherwise with a breakdown under the rising level.
Today’s session low represents the lower boundary near the 2,007 level and it will be our focal point (bull above; bear beneath) going forward.
Perhaps as a result of the morning weakness, Sector Breadth is slightly Bearish/Cautious:
While we have moderate sector performance (most sectors show 50% of stocks positive), we do see that Utilities tops the performance of the day and that’s a bearish sign.
Relative strength – though not by much – still concentrates in the Staples and Health Care (the other defensive names).
Potential bullish trend day continuation (buy retracements) stocks include the following:
Vertex Pharma (VRTX), Mallinckrodt (MNK), Dr. Pepper Snapple Group (DPS), and Verizon (VZ).
Today’s downtrending stock scan includes the following bearish candidates today:
Garmin (GRMN), Corning (GLW), Flir (FLIR), and Fossil Group (FOSL).
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