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Look What I Pulled Out of This Mixed Bag the Market Gave Us

A bit of good news, and it has to do with sentiment.

The Market

For the quarter close it was a mixed bag, as the indexes soared and breadth was barely green on the day. But I have some good news to share.

The 30-day moving average of the advance/decline line is still oversold. And while the Volume Indicator (shown below) has moved up to 47%, it’s far from overbought. The Hi-Lo Indicator is inching lower and is still far from oversold.

While breadth is still lagging, this is the closest the McClellan Summation Index has come to halting its decline in weeks. It’s still trending down, though. What would turn this bullish? If the big caps can have a crummy day or two and breadth can do well.

But wait, I did say good news, and what I’ve written above is not new. The good news is on the sentiment front. The Investors Intelligence bulls ticked up one to 52.5%, so shrug, that’s neutral, but look at the rise in bears. In the last few years we have rarely seen the bears get themselves up and over 20% and this week they chimed in at 21.8%. A few weeks ago they were in the 16% area. Chalk this up to good news for bulls.

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So far, all we’ve seen is a lot of chop in the market. The indexes have rallied hard in the last week, but in general there’s been a lot of sloppy action underneath. I don’t expect that to change, but maybe the new quarter can see some action in the down-and- outers, enough to change the cautious tone that has been creeping in of late.

New Ideas

Clorox (CLX) - Get Free Report has not participated in the rally of the last week, but I still think it’s trying to bottom in here. As long as it stays over this $205 area.

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I was asked if there were any retailers I liked aside from Walmart (WMT) - Get Free Report, and I would note that I did like LuluLemon (LULU:Nasdaq) recently, but I went through the charts and while I am not a fan of high bases, I would point out that if Deckers (DECK) - Get Free Report can get up and over this resistance, it could have a nice run. The problem is I’m not sure where to put a stop.

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Today’s Indicator

The Volume Indicator is below:

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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.

A10 Networks (ATEN) - Get Free Report looks bearish to me. The best I can say is there is support around $8, so if it can hold that maybe it improves. There is quite a bit of support there so a break would be bearish.

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Chewy (CHWY) - Get Free Report still looks questionable to me. However, if you want to be long it then the risk/reward isn’t terrible because under $52 and you know you are dead wrong. Over $57 and it gets saved.

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The Real Estate sector exchange-traded fund iShares US Real Estate IYR (IYR) - Get Free Report looks to me like it’s simply trapped in a range between $75 and $85 and isn’t in a hurry to break in either direction. It’s got a 3% yield which may help it from breaking down.

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