Stock Market Declines on Wednesday
Part of me can’t believe that the stock market can actually decline! Unprecedented! How can that happen?!
Sarcasm aside, stocks logically retraced lower away from 2,115 toward the key 2,100 pivot level today.
Let’s update our levels for the S&P 500 Index:
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Negative divergences in an over-extended rally finally caught up with price; today’s session is a retracement.
Here’s a key quote from last night’s strategy and planning report for members:
“We’ll be more cautious tomorrow due to the negative divergences in momentum and Internals (Breadth)”
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Let’s see what our Breadth Chart reveals about current market strength (or weakness):
As I highlighted yesterday, Sector Breadth was weaker as the stock market was short-squeezed to new highs.
The divergences caught up with price and now we’re seeing the price weakness and caution.
The Utilities Sector – defensive – is the top performer of today and it’s the only sector above 50%.
Here’s a top-level or full-perspective view of today’s S&P 500 (NYSEARCA:SPY) stock performance (courtesy of FinViz.com).
Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:
Globus Medical (GMED), Tesla (TSLA), Rexnord (RXN), and Myriad Genetics (MYGN)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Voya Financial (VOYA), Motorola (MSI), 21st Century Fox (FOXA), and Darden Restaurants (DRI)