Cerner Corporation (CERN)

[TREND1]

Some stocks fit nicely into sectors and industry groups. And some don't. Cerner (CERN) is part of the Health Care SPDR (XLV), but it is really a technology stock that serves the healthcare industry. Namely, Cerner provides information technology solutions for the healthcare industry. More importantly, the price chart looks constructive as the stock reverses a short-term pullback to signal a continuation of the long-term uptrend.

First and foremost, the long-term trend is up. The chart shows Cerner with a big island reversal from November to March and a breakout in April. The stock broke above the 200-day SMA with a big gap and never looked back as it surged to new highs in June and July.

A close below 70 would warrant a re-evaluation.