Textbook TA

Today's trade was right in line with the textbook on technical analysis. We started the week in consolidation mode after reaching both overbought conditions and overhead resistance. If only the market would cooperate this well all of the time!

Last week's hottest groups - homebuilders, financials, and retail - were under the most amount of pressure as some of the short-squeeze momentum subsided and profits were booked. There were some disturbing headlines out there including some hefty downgrades in the financials and news that the CFO of Kb Home (KBH) dumped loads of stock amid the recent bounce didn’t help.

Within my stock screen machine (of which several screens were updated today), the performance was split. However, the most impressive movers include Nve (NVEC), Ebix (EBIX), Solarfun (SOLF), Quicksilver Resources (KWK), TheStreet.com (TSCM), China Petroleum (SNP), L.B. Foster (FSTR), and Mosaic (MOS).

We'll see how long this consolidation lasts with so many now convinced the worst is behind us. A breakout above S&P 1400 would certainly go a long way to help. Have a great evening!