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)
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