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Bullish Post-Fed Rally Ends on Thursday

Well that bullish post-Fed rally was fun while it lasted.

 

By Corey Rosenbloom

Today’s session so far has erased all the gains and more from the initial Fed-Rate Hike Rally yesterday.

Let’s update our levels for the S&P 500 (NYSEARCA:SPY) Index and note the big trending stocks today:

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That which goes up must come down – stock prices are often no exception.

We started with a downside swing and the beginning of the day continued lower toward the 2,050 target.

From there positive divergences occurred for a bounce off the 2,050 index level – on which we’ll focus attention.

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Let’s see what our Breadth Chart reveals about current market strength (or weakness):

Higher interest rates help the Utilities Sector and it’s clearly the dominant (most bullish) sector of the day.

80% of Utility Sector (NYSEARCA:XLU) stocks are positive while 90% of Dow (NYSEARCA:DIA) Stocks and 85% of S&P 500 stocks are down.

This is the picture of Risk Off Defensive money flow on an individual and larger basis of money flow.

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:

Alliant Energy (LNT), Marathon Petro (MPC), FedEx (FDX), and Valero Energy (VLO)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Polaris (PII), BCE Inc, Rio Tinto (RIO), and Oracle (ORCL)