Many Leading Stocks Rebound; Market`s Tone Improves

Stocks have shown better action this week, helping switch IBD's market outlook to "in confirmed uptrend."

That switch came after Wednesday's session, when the S&P 500 delivered a follow-through day.

Still, the follow-through day was on the marginal side. Investors following IBD's CAN SLIM strategy should proceed with caution.

Among the leading stocks that are acting well, one common theme is a rebound off support near the 10-week moving average.

Some of the main indexes are displaying that same behavior, so it's no surprise to also see it among highly rated stocks.

Remember that in a rising market, 10-week pullbacks can provide a chance to buy a winning stock or add shares to an existing position.

Credit-card networks MasterCard (MA) and Visa (V) both have executed 10-week rebounds. MasterCard's actually looks a little better. You prefer to see active turnover in a rebound, and MasterCard has that, while Visa has rallied in below-average volume.

Longtime leader Priceline.com (PCLN) also has lifted off support at its 10-week line. Its IBD industry group, Leisure-Travel Booking, continues to sport a strong ranking, standing at No. 13 out of 197 groups as of Thursday.

Genesco (GCO) has staged a 10-week rebound, too. The shoe and hat retailer tried to clear a 75.65 buy point from a flat base April 17, but it couldn't close above that level.

The stock then fell back near its 10-week line before jumping Thursday. It now has managed to close above 75.65.

Other leading stocks have at least regained their 10-week lines, even if they haven't lifted above them at this point. Take Lululemon Athletica (LULU), for example.

Lululemon could be working on a new base as it finds 10-week support. The seller of high-end athletic clothing has been consolidating for about three weeks.