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Here's the Big Question for the Market

Will the S&P 500 fill that gap overhead, up there at 3335? Here's why we want to know.

The Market

Another day with another rally, but you’re probably wondering what stocks were hot? It wasn’t even the same old names in tech, nor was it widespread the way it was the prior day.

The real question is whether the S&P 500 is going to fill that gap overhead, up there at 3335. Why do I question it, when the market rallies late in the day every day? Because typically once you get into a gap, you see price get sucked up fast and this has been rather plodding instead.

In any event, the statistics weren’t great Wednesday, since breadth lagged the Transports also lagged and the number of stocks making new highs were really pathetic. Yet none of the indicators changed.

Heck, even the DSI readings barely changed. Silver stayed at 93. Gold nudged up to 91. The S&P sits at 83, while Nasdaq mills around at 82. And the VIX? It’s at 15. Even this volatile sentiment reading is bored.

On the gold front, recall I have had a next target of $175 to $176 for a while now and it tagged that Thursday with the 91 DSI, so I suspect it’s time for GLD (GLD) - Get Free Report to take a breather. A pullback to the red line would be healthy. Alternatively, a big sideways move like we saw in April and May (black lines) would also be a plus.

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New Ideas

Am I crazy to still think the banks can rally? I am. They did not participate at all Thursday. Yet, I look at a chart like Bank of America (BAC) - Get Free Report and think, If it can get through $25, it would improve drastically.

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I would note that Pepsi (PEP) - Get Free Report has been going sideways for months now, so a move up and over that $138 area would be a breakout.

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Today’s Indicator

The Volume Indicator has come down. Finally. It is now at 50%, which is neutral. It would have to get to the mid-to low 40s to get oversold. Quite frankly it shouldn’t be this low with the indexes up so much because it tells us up volume really isn’t that supportive of the market.

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Q&A/Reader’s Feedback

Helene welcomes your questions about Top Stocks and her charting strategy and techniques. Please send an email directly to Helene with your questions. However, please remember that TheStreet.com Top Stocks is not intended to provide personalized investment advice. Email Helene here.

When I got the request for ticker TFC (TFC) - Get Free Report, I wondered what it was, but now I see it is the new ticker for BB&T (a bank) and it has a chart I like. I will say that there is resistance at $37.50, so if it can’t get through and it goes south from here and breaks under $34-$35 I’d have to get out in a hurry.

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I have been waiting for Gilead (GILD:Nasdaq) to make a move toward $80 for months now (I first warmed up to it – again – around $73 back in May), but I will give up on it if it breaks under $74. It has had ample opportunity to get up there and it has become a serial disappointment.

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Cameco (CCJ) - Get Free Report is a nice chart. I can measure a target in the $12.50 to $13.50 area. A pullback toward $11 would be buyable.

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I was asked about my old friend CrowdStrike (CRWD:Nasdaq). The measured target has been achieved when it tagged $100. Now I would be negative on the stock should it break that uptrend line with any oomph.

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If it wasn’t for that spike high in Garmin (GRMN:Nasdaq) from February, this would be a very good chart. Now it’s pretty good (yes, there is a distinction). That spike high is probably going to give it trouble in the short term, but if it can stay over $95-$97, it should make its way higher over time.

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