Editor's Note:

There is no denying that the Dow Industrials have been showing some relative strength with a new all-time closing high. Yet the big cap index still has resistance in the 16,590-16,600 area. The S&P 500 index is also nearing resistance. Meanwhile the NASDAQ and Russell 2000 both bounced today but remain in a bearish trend of lower highs.

We are about to hit May, which could see a seasonal pattern of weakness. We also see the yields on the 10-year U.S. bond approaching support in the 2.6% area. A breakdown below 2.6% could be a significant warning signal for equities.

We are not adding any new trades tonight. Stocks are likely to churn sideways ahead of the Friday morning jobs report.

I did see a number of stocks that caught my eye (see below) but many of them need to break through resistance (or support) and a few have earnings coming up soon. I would put them on your watch list.

(bullish ideas)
MU, SDRL, SAIA, UPL, HLX, VNCE, GBX, PVA, HOS, MYGN, ABFS,

(bearish ideas)
FRGI, AMWD, GTS, MSCI, MTZ, OFIX