Some incredible events have occurred over the last month, driving the market about 6% lower from the highs established in February. So far, despite the overwhelming international situations that have affected the market, the S&P 500 and other major indices have been able to maintain their long-term bullish trends.

After enduring a week of shocking headlines from the aftermath of the earthquake and tsunami in Japan, the market is now digesting the news that the UN has established a no-fly zone in Libya, supported in part by the United States. This action has oil prices looking to move higher again; however the market appears ready to rally higher after the news from Libya.

Despite the headline-driven crosswinds that the market has faced, the major indices such as the S&P 500 have been able to maintain their bullish trends. Last week, the S&P 500 rallied after touching its 100-day moving average, one of the trend lines often used to determine whether the market is in “bull” or “bear” mode. The fact that these trend indicators continue to move higher suggests that investors are still moving cash from the sidelines back into stocks.

The market’s short-term strength suggests that traders should be looking for opportunities to increase their equity exposure, but which stocks are the best to be looking at? As things stand, one approach is to buy strength on the strength, meaning we’re looking to take positions on those stocks that have held up relatively well during the six percent correction that stocks have undergone.

The lists below represent some of the stronger prospects from the S&P 500, Nasdaq 100 and Russell 2000 for companies that are likely to resume their charge higher as the market conditions improve. These stocks are the most widely watched by the analyst community in each of the indices and each remain above their respective 50-day moving averages with short-term trends that are trending higher. In other words, these are the stocks that have been thriving during the latest weakness.

To give an idea of how much of a standout these companies are with respect to their peers, the lists of stocks below represent only 1.8%, 4% and 0.05% of the S&P 500, Nasdaq 100 and Russell 2000 Indices respectively.

While there are going to be a number of oversold stocks that may experience larger short-term bumps in price, these stocks are more likely to be the ones that see a breakout move higher to new trading levels as they lead the market higher.

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