The S&P 500 index is essentially unchanged over the past four weeks, which is offering a chance for quality stocks to form new consolidations. Charles Schwab ( SCHW ), E-Trade Financial ( ETFC ), Phillips 66 ( PSX ), Vantiv ( VNTV ) and Ollie's Bargain Outlet ( OLLI ) are all in flat bases .
[ibd-display-video id=2839602 width=50 float=left autostart=true]Charles Schwab, fellow online broker age E-Trade Financial and refinery operator Phillips 66 are all members of the S&P 500 index. The S&P 500 index closed Friday at 2578.85, closing the fourth straight week of gains or losses of less than 0.3%. The S&P 500 rose modestly Monday afternoon.
Charles Schwab, E-Trade Financial and Ollie's Bargain Outlet all have Composite Ratings above 95. Vantiv has a strong 91 while Phillips 66 is an OK 76. All-time winners often have Composite Ratings of at least 95 near the start of their big runs.
IBD'S TAKE:Flat bases require a minimum of five weeks and typically the stock's decline is no more than 15% from the high to low of the consolidation. Learn more about this super growth stock pattern .
The flat base forms as a stock refuses to cede much ground during a consolidation. That suggests that the stock wants to move higher.
Charles Schwab has been consolidating since Oct. 6, with a potential buy point of 46.31. Shares rose 1% to 45.12 on the stock market today after closing Friday at 44.68, just above their 50-day moving average. Schwab's consolidation is forming next to a prior base.
E-Trade's consolidation also began on Oct. 6, with its entry point at 45.80. Shares finished last week at 44.17 after finding support recently at its 50-day line. E-Trade rose 0.6% to 44.45 Monday.
E-Trade's consolidation is a base-on-base pattern , forming just above a prior flat base, which in turn set up just over another flat base.
In addition to Schwab and E-Trade, fellow brokerage TD Ameritrade (AMTD) also is acting well, currently in buy range.
Phillips 66 has a short up-and-down flat base that goes back to Oct. 13 with a 95.10 potential entry. The refinery's stock fell 4 cents to 92.61, just above their 50-day line.
Warren Buffett's Berkshire Hathaway (BRKB) has a 15.9% stake in Phillips 66 .
Vantiv's consolidation, another flat base on top of a prior base, goes back to Sept. 16 with a buy point of 73.24. Shares advanced 1.2% to 70.80, clearing their 50-day line after finding resistance there in recent days.
Vantiv offers payment processing products for banks and merchants. Back in July Vantiv agreed to buy U.K.-based WorldPay for $10 billion.
Ollie's Bargain Outlet
Ollie's Bargain Outlet has a buy point of 47 in a consolidation going back to Oct. 5. The current consolidation is next to a prior flat base that did not take off. Shares of the closeout retailer shook off morning losses to rise 1.4% to 46.65. Ollie's jumped 2.45% to retake its 50-day line on Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.