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Stocks Remain HIGH CAUTION, 3 Positions

05/20   8:30am

On Thursday, stocks posted modest gains on quiet volume.  Major indexes remain slightly above 50dMA. There is no sector leadership and many leading stocks have broken below near-term support levels.

Stock purchases remain risky until the market confirms a new uptrend is underway.  Considerable work needs to be done for indicators to turn around.   

The climate is HIGH CAUTION.   

Focus is on stocks emerging from bases & above 50dMA.

This morning, futures are pointing to a fractionally LOWER opening. 

Selective Chartists Positions (with BUY price):     3 (subscribers only)

Closely Monitoring: 
Cypress (NASDAQ:CY)
Riverbed Tech (NASDAQ:RVBD)
Polypore (NYSE:PPO)
Tyco (TYC)
Lululemon (NASDAQ:LULU)
Analog Devices (NASDAQ:ADI)
Salesforce (NYSE:CRM)

View the charts of major indexes testing 50dMA