It is difficult not be impressed with the price action in Johnson & Johnson (JNJ) during the 5-week period of extremely weak price action in the larger SPX.

My technical works argues that all of the action in JNJ for the past 5 weeks represents a high-level, bullish consolidation period, which when complete should resolve itself to the upside in a thrust to new highs that projects into the 70.00 area next.

Only a decline that breaks 65.50/10 will compromise the developing bullish pattern.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.