Nothing's changed. The statistics are still lousy. But you knew that since this rally has been concentrated mostly in tech and biotech.
In my continued effort to find a group of stocks with upside possibilities, I'll turn my attention to the financials, which have emerged as candidates this past weekend. The
New York Finance Index
had the opportunity to break on this past leg down, but it hasn't. In fact, it didn't even make it down to the uptrend line. Typically, when a stock or index fails to come all the way back to test the trend line, it is telling us it would rather move in the opposite direction. In this case, the finance index did not come all the way back to the uptrend line, causing me to believe it would rather rally. In addition, interest rates are in their backing-and-filling stage and thus not poised to soar higher at this point, which could help the financials as well.
This was most apparent when
American International Group
bounced so well on Friday from its own uptrend line. A rally back to 130 seems likely. And
Bank of America
has refused to give up an ounce, instead moving sideways and feeling as though it would rather go up than anything else. The best financial stock chart in my pile is
. It has a target in the mid-150s and appears to want to get there.
New Highs and New Lows
Cumulative Advance/Decline Line
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at