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Low Volatility Compression Range Day on Monday

Today’s session is a low volatility compression Range Day in the S&P 500, but there are trending stocks to play.

 

By Corey Rosenbloom

Let’s update our levels for the S&P 500(NYSEARCA:SPY) Index:

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With Friday’s breakout surge above the 2,060 bull/bear pivot level, price stalled above 2,070 and has formed a clear Magnet or Midpoint Price at the current level of 2,071.

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Note the visual symmetrical triangle or compression trendlines developing into this spot.

Look to play bullishly for a breakout beyond 2,075 or bearishly under 2,065 for a possible impulse swing.

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

As is often the case on Range Days, we’re seeing a mixed signal from Money Flow or Sector Breadth.

The strongest two sectors are Discretionary and Health Care(NYSEARCA:XLH), one from an Offensive and one from a Defensive group.

Otherwise breadth is flat (under 50%) while Materials and Energy(NYSEARCA:XLE) are today’s weakest sectors.

With no clear signal, price is left to dwindle into a sideways compression without direction.

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:

Ctrip.com (CTRP), Sonic (SONC), Priceline (PCLN), and JetBlue Airways (JBLU)

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

Tyson Foods (TSN), Sprouts Farmers Markets (SFM), Cal-Maine Foods (CALM), and Kinder Morgan (KMI)