The Divergences are Working July 25 Market Update
Fri, Jul 25, 1:11 PM ET, by Corey Rosenbloom
I’m actually a little surprised that the market is falling like it “should” be doing, or at least as was highly logical given the negative divergences at the highs.
Start by refreshing your perspective from yesterday’s “S&P 500 Gasping at New Highs with Clear Negative Divergences” update which sets the stage for today’s expected sell-day.
Here’s the updated S&P Intraday Chart:
For additional planning, be sure to view the broader picture updates from the past sessions:
S&P 500 Gasping at New Highs with Clear Negative Divergences
SP500 Update for a Fibonacci Level Planning Grid
S&P 500 Update and Level Planning July 22
We note the sharp (and highly logical/expected) sell-swing down against the 1,990 level to the spike-reversal (initial) target of 1,975 (today’s low so far).
We’ll be monitoring any additional bounce up off this level and otherwise continuing our short-sell/bearish logic on a trigger-break under 1,975.
We’ll also be prepared for “alternate thesis breakout” planning should buyers once again flood the sellers, triggering a short-squeeze.
Now, let’s shift our attention to bullish-trending stocks for potential buy-trades the rest of the day:
Verisign Inc (VRSN), LyondellBasell (LYB), Tenet Health Care (THC), and Black and Decker (SWK).
Bearish potential trend day continuity stocks include the following candidates:
AON, Chubb Corp (CB), March and McLennan (MMC), and AutoNation (AN).
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
SDI Glossary: "Bearish" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
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