What goes down must come up… right?
After an initial bounce in the morning, price retested the low on positive (stretched) divergences ahead of our logical snap-back rally we’re seeing mid-day.
What’s going on now and what levels are important? Let’s see:
Here’s a key strategy planning quote from last night’s members-only update:
“…be ready to buy a support bounce that boosts the market “up away from” the 200 day SMA pivot near 2,055/2,060.”
Continue to receive real-time, detailed strategy planning by joining as an Afraid to Trade full member.
Again, our key pivot target was the 2,060 level which was retested midday ahead of the clear positive TICK and Momentum divergence.
We’re now seeing our expected (dominant thesis) short-term bounce/reversal “up away from” this level toward the 2,075 pivot or higher.
Always compare price with Internals or Momentum and be on the lookout for divergences like these.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
While yesterday saw almost total sell domination (few stocks were positive), today’s session shows bullishness but not outright bullish domination.
All sectors are balanced near the 70{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} to 80{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} Breadth level so there aren’t any obvious standouts.
It’s a sign of across-the-board bullishness at least as a counter-balance to yesterday’s selling.
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
Fitbit (FIT), Las Vegas Sands (LVS), Valero (VLO), and Wynn Resorts
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Sony (SNE), Sysco (SYY), Rio Tinto (RIO), and Western Digital (WDC)
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: https://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).
SOURCE: Afraid to Trade.com Blog – Read entire story here.
