The market has cracked through support with 418 stocks down 4% or greater. Currently, we have been in a defensive posture since late October and remain defensive until we see a significant breadth thrust to the upside. Read more about breadth thrusts here.
The market suffered a 1000+ stocks down on the primary breadth indicator yesterday. Currently, we remain in range but a break below these levels would trigger the next leg down.
The Post Earnings list has been updated. This list contains all stocks that had an 6% move or greater on the day of their earnings. All earnings in the past 92 days.
This list is different than the one in Bluefin which looks at stocks with an eps surprise of 25% or greater.
On October 7th, the bullish percent indicators gave two signals of breadth confirmation with our moving average cross over and the slow sto crossing up above 20. Shortly after, the indexes closed above the long term trend and continued to rally to resistance at the highs of 1292.66.
This rally was quite violent and setups were lacking.
Currently, we are sitting in overbought conditions and looking for a pullback or consolidation period to offer up better lower risk entry points.
The top 20 sectors according to Bluefin:
Each day in the daily blog post we cover the indexes, breadth, and the plan for the upcoming day. Currently, we remain defensive while the market works out these overbought conditions.