Meandering S&P Masks Surging Stocks

The S&P 500 has done little since mid-March, but the dullness has disguised spikes in the most speculative areas of the market, as well as some of the go-go momentum names in sectors.

These names include DXP Enterprises(DXPE Quote), which reversed sharply on Thursday.

Ditto Archer Daniels Midland(ADM Quote), Kirby(KEX Quote), Terex(TEX Quote), Garmin(GRMN Quote) and NutriSystem(NTRI Quote), as well as recent swing picks I've examined in The Trading Reports: Equinix(EQIX Quote), Zoltek(ZOLT Quote), and MGP Ingredients(MGPI Quote).

We did not see momentous momentum on Thursday, but the S&P did squeak out another solid up session, closing over the 1310 pivot once again with a close of 1312.25. It is important to remember that as long as the overall market is not getting hit and the S&P is in the green, then it is easy for individual, strongly trending stocks to make further gains.

The S&P appears well poised for a breakout on Friday, as it has traced out a Cup and Handle pattern within a Cup and Handle. Additionally, the daily pattern from Thursday, as it pertains to the 10-minute chart, also supports the notion of a strong Friday close as long as the market holds over any first-hour highs.

The story of the day was oil, which has given two large-range piggyback decliners resulting in a quick $5 pullback off its highs. Because oil has closed back below last year's $70-$71 high, the price action may, as shown yesterday, indicate that a consolidation/pullback phase is upon us.

The streetTRACKS Gold(GLD Quote) ETF also pulled back sharply intraday, going red during the session, probably in sympathy with oil.

Gold is approaching a key window of $680 to $720 that, in my work, represents resistance, which should lead to a setback within an ongoing bull market as well.

S&P 500 10-Minute

S&P 500 Daily

Equinix (EQIX:Nasdaq) Daily

MGP Ingredients (MGPI:Nasdaq) Daily

streetTRACKS Gold (GLD:NYSE) 10-Minute

Zoltek (ZOLT:Nasdaq) Daily