Two More Basing Candidates

As the S&P 500 trades below the 1220-to-1225 level (the summer consolidation high) and its 50-day moving average, the erosion in the broader market continues. The longer it remains below this level, the more it diminishes the likelihood, or potency, of a seasonal rally.

As I mentioned in Columnist Conversation on Friday, if the S&P were to close above overhead resistance and in its upper daily range, that could initiate a sharp move higher to the downtrend line drawn off the July, October and December highs in the 1260 area. With the kind of intraday volatility we have seen, it certainly is an option for any final-hour algorithmic trading-inspired heroics. The longer it takes, however, for the index to gain traction, the more likely it will slip back down to the 1190 area. Last week, I highlighted several stocks that are going against the broader market trend and have recently broken above their summer consolidation resistance levels, forming solid bases from which to move higher....375 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.