Bull Trap Triggered on Thursday
A Bull Trap triggered as price broke out, stalled into the 2,000 target, and reversed this morning.
However, we’re starting to see additional strength mid-day. What’s going on and what are we watching?
Let’s update our levels for the S&P 500 (NYSEARCA:SPY) Index:
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We’re seeing the Range Day bias continue as the S&P 500 bounces between the 1,980 and 2,000 levels.
Internals are weakening which increases our caution level though again focus on 2,000 as an upside “short-squeeze” breakout trigger or else the logical downside movement away from 2,000 and especially on a trigger break under the 1,980 support zone.
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Let’s see what our Breadth Chart reveals about current market strength (or weakness):
Like the market, Breadth is mixed today with most sectors above the 50% Breadth Line.
However, Health Care is the worst performer today followed by Financials(NYSEARCA:XLF) and Technology(NYSEARCA:XLK).
Our best sector of the day is Utilities… and that’s usually a defensive/bearish sign.
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:
Posco (PKX), EMC Corp, ITT Corporation, and FMC Corporation.
Bearish downtrending candidates include the following stocks from our “weakness” scan:
eBay Inc, VM Ware (VMW), Cal-Maine Foods (CALM), and Domino’s Pizza (DPZ)