LyondellBasell Industries

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Nearest Resistance: $50

Nearest Support: $47

Catalyst: S&P 500 Slot

>>5 Stocks With Big Insider Buying

LyondellBasell Industries ( LYB) is up more than 3% as I write this afternoon, buoyed by news that the chemical company will replace beleaguered Sears Holdings ( SHLD) in the S&P 500. Because the S&P is the most heavily "bought" index, with scores of index funds designed to mirror its makeup, a lot of institutional buyers are going to be forced to pick up shares of LYB -- thus the pop from the news.

Don't overdo it, though. Institutional buying pressure from an index change isn't typically that consequential, so the upside is probably already priced into shares. What is consequential, though, is the technical setup that's taking place in LYB right now. We're within striking distance of $50 resistance right now; if LYB can break out above $50, I'd recommend buying.

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