That’s two days in a row of a failed breakout attempt or a “Bull Trap” intraday reversal.
Hopefully we learn the lessons from the prior session when trading today.
Let’s update our levels for the S&P 500 Index:
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Here’s a key planning quote from last night’s report:
“Stock prices – given negative divergences in volume, momentum, and internals in an extended run – have much higher probability of falling (like that of mid-October) “down away” from the 2,035 level.”
So far, that’s precisely what we’re seeing in today’s session, despite a little bullish trickery in the morning (and maybe into the close).
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Let’s see what our Breadth Chart reveals about current market strength (or weakness):
We’re seeing the Defensive Sector Groups outperform today as Staples is the strongest sector.
While Industrials(NYSEARCA:XLI) (sector) is the one bullish hold-out, the other strong sectors include Health Care(NYSEARCA:XLH) and Utilities(NYSEARCA:XLU).
As with price, sector money flow gives us a caution signal mid-day.
Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
Syngenta (SYT), Solarwinds (SWI), Sony (SNE), and General Motors (GM)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
VM Ware (VMW), EMC Corp, Chipotle (CMG), and Humana (HUM)