Yes Stocks can Still Fall Market Update and Trending Stock Scan Feb 27

Strangely, stock prices can actually fall and today’s session so far is a very similar if not almost identical repeat of yesterday’s morning session.

We’ll be following and trading price action with respect to whether today fully repeats yesterday or else creates a new intraday structure at key levels.

Here’s the Structure and Planning Levels on the S&P 500 intraday:

Today’s session opened with a quick sell swing that – like many other days before it – saw a bullish intervention short-squeeze the market higher.

It would appear that the natural course of the market (short-term) is toward the downside, retracing the strong bullish movement.

So far, the intraday chart above shows a jumbled mess of price overlap between the 2,100 (pivot) and 2,120 level

Look for additional downside price action – and bearish trades to trigger – on a movement down away from 2,110.

Otherwise, this market is amazingly short-squeeze intervention bullish above 2,114.

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

Sector Breadth – like price – is mixed across the board.

All sectors trade near the 50% or halfway Breadth level, though Staples is the slight winner today.

Caution is the goal when a bull/bear signal (sector strength) isn’t abundantly clear.

We have potential bullish trend continuation plays in the following stocks from our scan:

Monster Beverage (MNST), Ross Stores (ROST), DigitalGlobe (DGI), and Coca-Cola (KO)

Potential downtrending candidates exist in stocks showing relative weakness today:

Ingram (IM), CST Brands, Kroger (KR), and GoPro (GPRO)

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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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