Up, back down, up, back to a new low, and now off to a new high – that’s today’s session in a nutshell.
Let’s update our levels for the S&P 500 Index and note the big trending stocks today:
Our 1,835 SP500 (NYSEARCA:SPY) target was achieved yesterday and price rallied up into the close on positive clear divergences.
However, we were welcomed with a sharp down-gap BACK to our 1,835 support target and a sudden boost up away from it again.
More swings too price back down toward, then up away from, and finally back toward 1,835 on a huge positive divergence.
Like yesterday – almost exactly at the same time – we have our big end-of-day rally up through to new highs.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Despite the second day of bullish price action, the strongest sectors are the Defensive names (Staples and Utilities).
Materials and Industrials (NYSEARCA:XLI) are also strong while Energy (NYSEARCA:XLE) – once again – is the weakest sector of the day.
Take a moment to pull the perspective up – view this morning’s “Sector Strength/Weaknesss” Post.
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:
Owens & Minor (OMI), WellCare Health (WCG), Tenneco (TEN), American Water Works (AWK)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Care Cap (CCP), Transdigm Group (TDG), HCP, Royal Gold (RGLD)