Despite the current strength in the market, our nightly ETF scanning did not produce much in the way of actionable buy setups because most industry sectors are near-term extended.

However, the Pharmaceutical ETF ($PPH) is one of the few ETFs still sitting in a tight range near its 52-week high.

After undercutting its 50-day moving average in April, $PPH stormed back above it for a few days before once again stalling at the $61 area.

But during the past five weeks, $PPH has tightened up nicely, while holding above support of its rising 20-day EMA. Take a look:



Notice that the 20-day exponential moving average (beige line) has crossed back above the 50-day moving average (teal line), while the 50-day moving average has also turned higher. These are bullish signals.

$PPH showed intraday weakness yesterday, but the ETF found support at its 20-day exponential moving average, bounced off its, and closed near its high of the day.

If the price of $PPH manages to close above the June 5 high, we could potentially see a move to new 52-week highs shortly thereafter.

As such, we are placing $PPH on today's watchlist for potential buy entry. Subscribing members of The Wagner Daily should note our exact buy trigger, stop, and target prices in today's report.

The current stock market rally is building momentum, with the Nasdaq 100 and S&P 400 joining the S&P 500 at new 52-week highs. While large cap stocks have fueled the rally for the most part, small and mid-cap stocks now appear to be waking up.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.