This is our weekly S&P 500 MoMo (momentum) report. We have analyzed the S&P 500 through our stock screeners to give you the top stock recommendations with positive and negative momentum to help you get an edge in your trading.
We also look at whether the S&P 500 may be primed for a reversal based on its market internal indicators.
In this report we look at:
- The S&P 500 has been battered by the Brexit selloff, and it looks like the selloff has a good chance of pushing it down to the 1950 level.
- Stocks have been dropping like flies over the past two days, but we focus our shorts on Mohawk Industries (NYSE:MHK), Bank of America (NYSE:BAC) and Legg Mason (NYSE:LM).
- We have a few cautious longs in American Water Works (NYSE:AWK), NextEra Energy Inc (NYSE:NEE) and Edison International (NYSE:EIX).
- AbbVie (NYSE:ABBV) and Allstate Corp (NYSE:ALL) have seen the biggest increase in reported short positions.
- A run-down of the market internals for the S&P 500.
- And a technical look at the index as a whole.
All stock picks are designed for a 3-5 day hold period with a 5% stop loss on every trade.
The S&P 500 has broken through its most recent trading range support level of 2040, and is right on the verge of dropping below that key psychological level of 2000. There does seem to be enough negative momentum behind the index to see it continue to push down towards the 1950 level.
It is unlikely to be a smooth ride, and today’s session is already looking like we may see a bit of a short-covering bounce at the open. But the trend certainly still seems to be to the downside.
To read the entire report, please click on the PDF file below: