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Source: TradeStation

If LQD breaks out above its range, the obvious short-term target is resistance at its 50-day MA, just below the $93 level. A protective stop could be placed 1-1.5 points below the breakout level. If LQD rallies to its 50-day MA and continues to act well thereafter, an added bonus is the regular dividend distributions of LQD (and other fixed-income ETFs as well).

Showing relative strength to the broad market for the past two weeks, the Pharmaceutical HOLDRs (PPH - commentary - Cramer's Take) may soon reverse both its short and intermediate-term downtrends. A convincing rally above Thursday's high will cause PPH to reclaim support of its 20-day exponential moving average (the beige line on the chart below). Since the 20-day EMA has perfectly acted as resistance for the past two months, a close above that pivotal resistance level will indicate a change of sentiment in the pharmaceutical sector. SPDR Select Sector Health Care (XLV - commentary - Cramer's Take) is another ETF in the sector with a similar chart pattern, as you can see below.

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Source: TradeStation

Sporting a similar chart pattern to the pharmaceutical sector are the utilities. The Vanguard Utilities ETF (VPU - commentary - Cramer's Take) is in play on a breakout above the Oct. 29 high. This would put VPU above its 20-day EMA for the first time in two months.

For a little more price confirmation, consider waiting for a rally above the Oct. 20 high of $61.87 before buying a full position. As with so many stocks and ETFs showing relative strength and attempting to reverse their downtrends, resistance of the 50-day MA (around $68, as seen below) is a logical target in VPU. In the same sector, iShares Utilities (IDU - commentary - Cramer's Take) is also a possibility.

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Source: TradeStation

For those of you who like to trade the major indices, the Dow is showing the most relative strength of the group. On Oct. 29, both the Diamonds (DIA - commentary - Cramer's Take) and Ultra Dow 30 ProShares (DDM - commentary - Cramer's Take) were the only broad-based ETFs that probed resistance of their 20-day EMAs, as well as resistance of their prior highs. A close above that day's high in the Dow would correspond to a breakout above both its 20-day EMA and "swing high" of Oct. 21, as seen below.

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Source: TradeStation