Are Mid-Cap Stocks Set to Lead the Market Higher?

Stocks struggled over the past week as investors managed to shrug off an escalating conflict in Korea only to have renewed sovereign debt troubles in Europe slug them in the face. The Dow Jones Industrials and S&P 500 both closed half a percent lower while the Nasdaq closed half a percent higher. The European exchanges all closed 3% to 5% lower. Yet some sectors thrived. Best groups for the week were retailers, semiconductor makers and Internet software and hardware makers, all up 3% to 5%. Major damages were mostly in large-cap banks and materials producers. Despite the trouble, some positive patterns emerged in the United States. In my reports two weeks ago, I mentioned that the S&P 500 Index had a shot at making a "cup with handle" continuation pattern if the decline stopped immediately at 1,080. It actually did, then fell back and tested the 1,080 level again this week. Click Here to read more on why the market could advance...