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Market Rally Rates a Meh

There is very little upside mo-mehn-tum.

The Market I can easily complain about today's rally. But I can also point to some positives we saw. Let's start with breadth. It was good, not great. Let's begin with last Monday's rally. The S&P gained 20 points and net breadth was +1,460. I called that "OK, not great." Last Thursday's 17-point rally in the S&P saw net breadth at +1,250. Again, OK, not great. Today? The S&P tacked on 25 points and net breadth was fractionally lower than last Thursday at +1,230. Yet the cumulative advance/decline line made a higher high and the McClellan Summation Index keeps trudging higher. That's why I say breadth was good. It was good enough to get a passing grade but not good enough to go to the head of the class. And it's not that much better on Nasdaq. Last Thursday, Nasdaq was up nearly 54 points with net volume at +925 million shares. Today, Nasdaq rallied 73 points with net volume +900 million. The advance/decline lines for both days was similar. Here again, in the big picture the numbers are fine because they are taking the cumulative breadth to new highs, but on a day-to-day basis, there is very little upside momentum taking place. The rallies are still pretty narrow. The good-news front has the number of stocks making new highs increasing (but still far below where they were in December). And sentiment does not show a huge embrace of the rally, with the put/call ratio today at 105%. Many will cite the fact that the major indexes crossed over their 50-day moving average lines as a positive; I would point out that they weren't rolling over/declining, so they are only minor resistance. Here's something to keep in mind. That giant head-and-shoulders bottom in Nasdaq that was created during Brexit and retested just before the election measures to 6010. The smaller pattern created over the last two months measures to 6070.

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Reaching a measured target is not the end, but often the market takes a long pause or has a correction once those targets are met. My guess is Tuesday sees some downside and/or backing and filling, but we are not yet fully overbought. New Ideas I was asked if I have any charts that have long bases. One of the stocks I have liked for quite some time is Abbott Labs (ABT) - Get Free Report. This is not a short-term chart we're looking at, so please understand it could take months to work and could easily see many ups and downs in between. But I do believe this is a base in the chart and if it can ever get over this $45 to $46 zone, it would be a nice breakout with a target in the mid-$50s.

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Today's Indicator The 30-day moving average of the advance/decline line is overbought.

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Q&AHelene 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. I have not been a fan of the U.S. dollar for quite some time. You might recall my view a month or so ago when I looked for CurrencyShares Euro Trust (FXE) to make a run to $105. I was asked to update my view on the Dollar Index and I must tell you I see a terrific support line. I don't know how far up the Dollar Index will rally -- it ought to rally back to the top of the channel, so that's my call -- but if it turns south before then I would head for the hills because a rally that fails to make it to the top of the channel is quite bearish.

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I am not a fan of high bases, but Haemonetics (HAE) - Get Free Report has broken out, so as long as it stays over $41 there is a measured target near $45. Please make sure you are not getting in front of earnings since it appears that February's whack might have been earnings-related.

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I don't go to Ulta Beauty (ULTA:Nasdaq) very often, but I was there last week so it was interesting that I was asked about it this week since I had not looked at the chart in ages. It hasn't broken down; there are no lower lows or lower highs, but a move under $275 tells me $270 would come in a hurry (green line). And if that happened, we would have some lower highs and lower lows for the first time in six months. I don't think it's a buy here.

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What to Watch as We're Overbought

What to Watch as We're Overbought

Let's take stock of the indicators and see what's ahead -- also a look at Cleveland-Cliffs, Southwest and several ETFs.

Rounding Up the Herd

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We're seeing a turn toward bullishness. Now let's see what happens when the consumer price index lands.

A Win-Win-Win for the Nasdaq

A Win-Win-Win for the Nasdaq

The exchange is working on a winning streak, so let's see if we get a pattern-changing trend. Also, let's check gold, the overbought forecast and Under Armour.

A Win-Win-Win for the Nasdaq

Believe in the Resistance

We learned a few things from Monday's action -- one of them is that resistance still matters. Let's check the market internals, breadth, and ... silver.