There's no doubt that this market is oversold on multiple time frames, namely the 30min, daily, and weekly charts. We've also tried to bounce the last two days, and have failed. Today, despite the lower open, the bulls ran out of the gate to fill the gap and march this market higher. So far it has rallied 17 points off of the SPX morning lows.
With that said, the market is looking to bounce today. There's no doubt that we could see a 12-15 point move higher in positive territory, which would mean additional short covering that would take place.
As a result I've put together a list of nine stocks that are looking to bounce in the coming days. The utilities across the board came up on my scans that resulted in the list below. More than half the list below includes as much.
Three stocks that I'd watch first and foremost are WellPoint (WLP), DTE Energy (DTE), and Pinnacle West Capital (PNW). All three of which are setting up for what I believe will be a mutli-day rally in.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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