Looking at the stock market since its early May highs the major indices just produced a new lower low in its three-week bearish trend. Now the S&P 500 and the NASDAQ composite sit on technical support at its 100-dma. Will they bounce or will the breakdown?
I am not adding any new candidates tonight. Instead, I'm providing a small watch list of stocks that caught my eye today.
CPO - Corn Products Intl. has been bouncing from its rising 40-dma for the last five days in a row. Shares managed to post another gain today. This might be a buy on a move past the $55.00 level.
DRI - Darden Restaurants tagged new all-time highs this past week. Readers may want to consider buying a dip or a bounce near the $50.00 level.
S - Sprint Nextel displayed relative strength today. The stock broke out from a trading range on Friday and closed at new two-year highs today.
WAG - Walgreen Co. displayed relative strength today. Shares are consolidating sideways near $44.