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Think Monday Looked Good? Think Again.

Statistically speaking, it was, how shall we say this, bad.

The Market

Well, that was an interesting day in the market. I mean, statistically speaking, it was about as bad as you can get.

New York Stock Exchange breadth was negative. That’s amazing when you consider that the S&P 500 gained nearly one percent. So once again, the McClellan Summation Index continues on its downward path. It can be saved with a rally, where breadth gives us positive 500, or better, but boy, with the S&P at a higher high, this is not impressive.

Nasdaq, where all the mega cap tech names ran, is even more interesting. On Friday, Nasdaq was up 29 points on the day. Monday it was up nearly 10 times that, at 263 points. Friday’s up volume for Nasdaq was 67% and Monday’s was 65%. I mean, shouldn’t up volume as a percentage of total be better on a day like this than a day like Friday?

The number of stocks making new highs increased more than last week, but neither the New York Stock Exchange, nor the Nasdaq, saw an increase over the prior reading.

Did I mention that the Russell 2000 was red on the day. The same with the Transports and the Utes. So all in all, it was the type of day where a handful of stocks moved the indexes. I would note that it is similar to last week on the down days: There is no real selling, there was just not widespread buying.

Finally, the Daily Sentiment Index for the Volatility Index did not quite make it to single digits, but rather ended the day at 10. I’d guess we will see some volatility later this week.

New Ideas

It has been quite some time since we’ve looked at the chart of Teva Pharmaceuticals (TEVA) - Get Free Report. I had liked it off the low. But as TEVA has a tendency to disappoint, I thought the best it could do was the February high, which is what it did. It has, however, spent the last six weeks or so going sideways, digesting the gains. If it can get through $13, it improves greatly. If it trades back under $11, I am wrong.

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Today’s Indicator

The 30-day moving average of the advance/decline line is still not oversold, although it is almost under the zero line, which means it’s getting closer.

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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.

Advanced Micro Devices (AMD) - Get Free Report went from being a hot stock to being stuck in the mud these last few months. I’d love to see it breakout over $60, because the next target would be near $70. Earnings are next week.

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I don’t know what to do with Ulta Beauty (ULTA:Nasdaq), because if it gets up over $210, I think it can run 20 points, but if it breaks under $190, I think it revisits the lows. So if it pulled back near $190, I’d give it a shot on the long side because the risk/reward would be good since we know under $190 and we’re wrong.

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Amazon (AMZN:Nasdaq) hasn’t done anything wrong yet, since it keeps testing that uptrend line, but it is not my style to buy a stock that is up so much already. It reports later this month.

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