One of the companies that hasn’t yet reported its second quarter earnings is Massachusetts-based UniFirst Corp. (NYSE: UNF).

When oil prices moved over $30 a barrel in the mid 1980s, it was considered a significant event.  It also signaled the birth of small ethanol companies in the Midwest. Many of them managed to hang around long enough to get a second wind when Iraq’s invasion of Kuwait and the ensuing Gulf War pushed oil prices pushed past $40.

There are a number of stocks that are also tracing out bullish consolidation patterns - and we’re going to focus on Costco (NASDAQ: COST) this week.

Last week, I displayed a chart showing the point spread between the S&P 500 and Nasdaq 100.

As you can see on the chart Alliant Techsystems (NYSE:ATK) has enjoyed an uninterrupted rally since the March lows. It blew through the 50-day moving average like it was not there and just kept on going. This is a sign of a very strong stock. 

As you’ve probably noticed, the stock indexes have been rallying for close to seven weeks now. During that period, the major indexes haven’t pulled back from any particular high more than 30% at any given time.

Last week, I showed you a chart of the Nasdaq 100, which is probably in the midst of tracing out a longer-term consolidation pattern (trading range), as it hadn’t traded below its November low. That range could be from the November 21 lows up to the January highs, possibly higher. 

Just one day after my last “Sector Watch” column (March 9), the stock indexes had clearly had enough of being nags and decided to go the stallion route instead. In fact, the S&P 500 galloped 20% higher in just eight trading days before hitting its 50-day moving average late last week. 

Since the current rally began two weeks ago, the Nasdaq 100 (NDX) indexes have performed stronger than the rest.