Technology leading the way higher
The market’s move to the upside this past week has resolved the question of whether its recent weakness was just consolidation or something more serious in favor of the former. Positive signs include the cancellation of some of the negative divergences in the technical indicators, and the out-performance of the technology sector, as represented by the Nasdaq, which has been leading the way higher.
This is reflected in the now almost all-positive weekly trend picture, where only the energy and utilities sectors, and the – albeit significantly oversold – Commodity Research Bureau Index are outright negative. Assuming the market continues to move higher, upside resistance levels that I’ll be watching are ~1440 and 1470-1480 on the S&P 500, and ~2500 (it’s there now) and ~2600 on the Nasdaq.
New positions
No new positions this week.
Watchlists
Just a few of the new stocks of interest showing up in the “upside strength” scans include Abbott Laboratories (ABT), Aflac (AFL), Anheuser Busch (BUD), Boston Scientific (BSX), DuPont (DD), Genentech (DNA), H&R Block (HRB), Louisiana Pacific (LPX), McKesson (MCK), News Corp. (NWS), Saint Jude Medical (STJ), Seagate Technology (STX), and Tyco (TYC).
New stocks of interest on the “oversold” list this week include AstraZeneca (AZN) and Statoil (STO).
