Meandering S&P Masks Surging Stocks

With the overall market in the green, it is easy for strongly trending stocks to make further gains.
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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) - Get Report

, which reversed sharply on Thursday.

Ditto

Archer Daniels Midland

(ADM) - Get Report

,

Kirby

(KEX) - Get Report

,

Terex

(TEX) - Get Report

,

Garmin

(GRMN) - Get Report

and

NutriSystem

(NTRI) - Get Report

, as well as recent swing picks I've examined in

The Trading Reports:

Equinix

(EQIX) - Get Report

,

Zoltek

(ZOLT)

, and

MGP Ingredients

(MGPI) - Get Report

.

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) - Get Report

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

Jeff Cooper is the creator of the Hit and Run Methodology and the author of the best-selling books

Hit and Run Trading (The Short-Term Stock Traders' Bible)

,

Hit and Run II (Capturing Explosive Short-Term Moves in Stocks)

, as well as a video course, Jeff Cooper on Dominating the Day Trading Market. He also created the Hit and Run Nightly Reports and co-founded a trading markets Internet site.

None of the information contained in Mr. Cooper's columns constitutes a recommendation by Mr. Cooper that any particular security, portfolio of securities, transaction or investment or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. While Mr. Cooper cannot provide investment advice or recommendations, he appreciates your feedback;

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