NEW YORK (TheStreet) -- The S&P 500 and Dow Jones Industrial Average are trading near flat on Monday, as the Nasdaq is trading comfortably higher, up 0.4%. TheStreet's Debra Borchardt is with Mark Newton, chief market technician at Greywolf Equities, discussing the recent price action.
Newton said that U.S. equities have rallied nicely in the past few trading sessions, likely helped along by the stabilization in U.S. Treasury yields and emerging market equities.
He was quick to point out that the Nasdaq never broke below its December lows, and even the S&P 500 wasn't that bad. The Dow Jones Industrial Average is what was quite weak during this correction.
Newton suggested that the S&P 500 would need to surpass 1,810 to breakout of its current downtrend.
Specifically, he said technology and health care stocks are setting up nicely and continue to outperform the broader market. Retail and consumer discretionary stocks seem to have bottomed as well.
Newton concluded that investors will need to see more follow-through to the upside in order to confirm that the lows have been put in.
-- Written by Bret Kenwell in Petoskey, Mich.