Stock Prices Decline for a Second Day
Wow stock prices can decline for a second day in a row during this short-squeezed rally!
Let’s continue our market update with a plot of the key target levels and our algorithmic stock scan of the day.
Here are our new levels for the S&P 500 Index:
Sign up for our Newsletter & get the FREE eBook
Retirement Day Trader:
How to Sell Weekly Options for Steady Income
In-depth analysis is always provided to members of the Premium Daily Reports – I hope you’ll join and benefit.
Negative divergences in an over-extended rally finally caught up with price with a two-day (so far) pullback.
Here’s a screencap of a chart I shared with members in last night’s strategy report:
The chart simply highlights the three prior retracements – and current pullback – against the current strong rally.
Note negative divergences going into the pullback and the two to three day nature of the prior retracement swings.
Receive daily updates, planning, and education by joining the Afraid to Trade Premium Membership.
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
With today’s bearish sell session, we’re not seeing overwhelming negative money flow.
In fact, the strongest sector of the day is the Financials (NYSEARCA:XLF) group where 60% of stocks are positive.
The weakest – perhaps surprisingly – is the defensive Utilities (NYSEARCA:XLU) group along with Technology.
All other sectors are near their 40% watermark.
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:
HomeAway (AWAY), Autodesk (ADSK), Ralph Lauren (RL), and Facebook (FB)
Bearish downtrending candidates include the following stocks from our “weakness” scan:
Qualcomm (QCOM), Albermarle (ALB), FireEye (FEYE), and Royal Gold (RGLD)