"The technical backdrop has taken a distinctly bullish turn," says Michael Ashbaugh in MarketWatch's The Technical Indicator. Here, he looks at the market averages and a trio of stock ideas.

"Perhaps most obviously, the S&P has staged a 10-to-1 rally, and a 28-to-1 spike, from its 200-day moving average. And by any measure, this raises a bullish technical flag.

"With a gravity-defying rally, the S&P extended its gains, clearing resistance at 930 last Thursday. From current levels, significant resistance holds at the 2009 closing high of 946 while initial support rests at 930.

"Meanwhile, the Dow's near-term view is similar. With this week's rally, it's staged a 'V'-shaped reversal, breaking to one-month highs. Looking ahead, significant resistance holds at 8,799 - matching the 2009 closing high - while support rests at 8,580, matching the breakout point.

"Despite what you hear, things are looking better," say Mary Anne and Pamela Aden. In The Aden Forecast, they explain why they're "starting to see the light at the end of the tunnel," and suggest a play on the Dow Industrial Diamonds Trust(NYSE: DIA) for broad market exposure.

The Adens state, "For now, the news remains bleak, the economy is getting worse and unemployment is becoming a huge problem. People are extremely pessimistic. However, we're actually feeling more optimistic than we have in months.