The Internet stocks have slipped in under the radar, and they're back on the offensive.

This sector has had "untouchable" status since the "tech wreck" of 2001 and has spent the last five years digging itself out of the basement. But the sector looks like it's finally moving back into favor. As the market gains strength and trader sentiment moves bullish, we are seeing an increased interest in technology and Internet issues across the board.

S&P 500/Internet Index Relative Strength Comparison

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The Internet group has once again started to outperform the

S&P 500

on a comparative relative-strength basis. Liquidity is also starting to return. Breadth for the sector continues to improve from the bearish levels we saw last year, which tells us investors are starting to put money to work in these stocks. This market is moving into the later phase of the rally, and the late phases of a bull market tend to be characterized by an increase in speculative exposure. The Internet stocks should fall squarely in that camp.

Here are some names in the sector that are building promising charts. The first is

(AMZN) - Get Report

, which is a name that everybody follows. Amazon surged higher at the end of April on a bullish earnings report that caught traders by surprise. Such gaps are typically very bullish. We can see that the stock posted a strong rally through May.

The stock has since consolidated the gains and pulled back for a retest of the uptrend line. AMZN has a bullish setup in place, and we would expect to see a resumption of the uptrend from this level. A break of uptrend support at $64 would suggest a bearish change, and we would use that level as a stop loss.

Another interesting name in the group is

(SFLY) - Get Report

. has built a steady uptrend recently, and the stock is now forming a bullish pennant continuation pattern. This type of pattern would suggest that the stock has consolidated the recent move and is ready to push higher.

The chart is very bullish and suggests that the bulls are in control of this name. A break of the primary uptrend line at $20.50 would take this stock off of the offensive, and we would use that level as a stop loss.

We would also add


to this list. Considering the problems with subprime lending and the mortgage market, we would have expected to be in trouble, but the chart says otherwise. RATE continues to build an attractive uptrend, and the stock has moved out over resistance, forming a bullish pennant, which suggests that the stock also wants to push higher from these levels.

Interested in other Internet names? Check out this portfolio on Stockpickr that looks at Internet stocks that you might not think of Internet stocks, but which derive a lot of business online.

At the time of publication, John Hughes and Scott Maragioglio had no positions in the stocks mentioned. Hughes and Maragioglio co-founded Epiphany Equity Research, which has developed and utilizes proprietary tools to identify and track liquidity changes in the market indices and sectors. Hughes advises numerous asset managers, hedge funds and institutions managing in excess of $30 billion. Maragioglio is a member of the market technicians association (MTA) as well as The American Association of Professional Technical Analysts (AAPTA) and holds a Chartered Market Technician (CMT) designation. Maragioglio has also served on the board of directors of the AAPTA.