The intraday reversal lower in the market's major indices looks a bit ominous. That's probably because stocks are so overbought after a bit three-month rally. Technically the S&P 500 and the NASDAQ composite are still inside their narrow, bullish channel. Yet instead of adding new trades tonight I am suggesting readers wait. If the market breaks down it could see a rush lower as traders try to lock in gains and stop losses get hit. If the market does not break down then we'll likely see a minor bounce off the trend of higher lows.
In the meantime, here are a few stocks that caught my eye as potential bullish candidates should the market bounce:
TU, LNN, RGA, WMB, QIHU, PB, SUI, NI, DISCK, CKSW, TROW and IACI