"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.

"The August lows now represent important technical levels defining the U.S. markets' primary uptrend," notes Michael Ashbaugh. The editor of The Marketwatch Technical Indicator explains, "Specifically, the S&P 500's August low holds at 1,427 while the Nasdaq's August low holds at 2,492. In addition, the Dow's August low holds at 13,134.

Ashbaugh continues, "For the Nasdaq and the S&P, a break below those levels would mark a failed test of support, also placing each index under its 200-day moving average. And if the breakdown were decisive, the primary trend would likely turn lower.

Yet "as ugly" as the current backdrop looks, he contends, from a strictly technical standpoint, the primary uptrend still has the benefit of the doubt.

Meanwhile, he suggests, we continue to find some names that are well positioned technically. These, he says, are intended as radar screen names - sectors or stocks positioned to move near term. In this light, the technician sees ongoing strength among chip-equipment names.

Ashbaugh says, "Each of these names broke out decisively in mid-July. Since then, Lam Research (NASDAQ: LRCX), ASML Holding (NASDAQ: ASML) and KLA-Tencor (NASDAQ: KLAC) have pulled in, establishing support around the breakout point. Further, he adds, Applied Materials (NASDAQ: AMAT) and Varian Semiconductor (NASDAQ: VSEA) are the group's strongest names, knifing even higher after the initial breakout, despite a down market."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Last week, I featured a post from turnaround expert George Putnam, who forecast that after several years of sideways action, General Electric (NYSE: GE) was poised for long-term improvement.

The stock is also gaining attention from advisors who focus on shorter time horizons. Indeed, trading expert Melvin Pasternak is now recommending the shares for a move to the mid-$40s.

The editor of Swing Trader explains, "GE peaked at just over $60 in early 2000. From there, the stock lost nearly two-thirds of its value, hitting a low near $20 toward the end of the 2002 bear market."

The technician continues, "The stock had been marooned in two prolonged trading ranges over the past two years. The first occurred from late 2005 to late 2006, between roughly $30 and $35. The second was from January 2007 to July 2007, from approximately $33 to $38."

Since recently reporting earnings, he asserts, "GE is showing new life. It has broken decisively out of its trading range and is climbing its upper Bollinger band higher."

Volume, he notes, has been about 35% above normal weekly levels in recent weeks, which he states is suggesting strong institutional accumulation. He adds, "The stock is above an upward-sloping 30-week moving average, suggesting it is in a bullish phase."

For the technically savvy, he notes, "ADX and MACD are on strong buy signals. Stochastics and relative strenth are somewhat overbought, but given the long base GE is breaking out of, I am not concerned." The trader's target for the shares is a move to $44.95.

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

A specialist in "breakout" candidates, Leo Fasciocco sees upside potential in Hansen Natural (NASDAQ: HANS), a maker of sodas, juices and teas.

In his Ticker Tape Digest, the technical advisor says, "The company is showing tremendous profit growth. And at current prices, he says, the shares are attractive for value and growth investors.

The company, he notes, has expanded its drink line to include a wide variety of energy drinks, such as the popular Monster brand. Its other products are fruit juice, smoothies, lemonade, iced tea, and spring water -- most of which are sold under the Hansen's brand name.

He points out that the company is also branching out with soy drinks and juices aimed at toddlers.

Technically, he explains, the stock's daily chart of HANS shows a breakout; its momentum indicator is very bullish and getting stronger. The analys adds, "The accumulation - distribution line is making new peaks. That shows the price advance is being supported by good buying."