BALTIMORE (Stockpickr) -- Stocks are pointed lower this morning, the first hint of a short-term correction after the nonstop rally the S&P 500 has been on for the past month.
As I write, the big index is sitting on the high end of its uptrend -- and while that "frothiness" may make some investors nervous right now, it shouldn't. Make no mistake, we're still in a "buy the dips" market. Now it's time to wait for the next dip.
But that doesn't mean you have to sit on your hands and wait for the S&P 500 to roll over. While the big index is on "pause" right now, there are breakout trades setting up in Wall Street's biggest stocks right now. Today, we'll take a technical look at five of them.
If you're new to technical analysis, here's the executive summary.
Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.
Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.