The weekly chart of Las Vegas Sands (LVS) shows that it completed a major continuation pattern, lines a and b, in late January.

• The 127.2% Fibonacci price-projection target at $61.80 has almost been reached
• The width of the flag formation has upside targets in the $67-$69 area
• The relative performance, or RS analysis, has also broken through major resistance at line c, suggesting that LVS will continue to outperform the S&P 500
• Though the volume has been declining since early 2011, the on-balance volume (OBV) indicates that LVS is being accumulated because OBV has broken through resistance at line d
• LVS has minor support at $58-$59 with stronger support now at $56.50
• There is good monthly chart support in the $50.50-$52.50 area

MGM Resorts International (MGM) rallied to a high of $14.94 in February and again tested the long-term downtrend, line e, in late Mach. The sideways pattern over the past three months could be a double top, but it is more than likely a continuation pattern instead.

• On a strong close above $15, the next major resistance from 2011 is at $16.94
• MGM peaked in October 2007 at $100.50, and the major 38.2% resistance is now just below $40
• MGM has very good support at line f, and the late-January low is at $12.65
• Weekly relative performance broke its downtrend, line g, in early January and is now testing its weighted moving average (WMA)
• A strong close in the RS line within the next week or so would support the bullish case
• Weekly OBV failed to move through its long-term downtrend, line h, in February, and it is now back below its weighted moving average
• There is good weekly OBV support at the uptrend, line i. The daily OBV (not shown) is still negative
• There is initial support now at $13-$13.20 with stronger support at the October 2011 high of $12.41

What It Means: The long-term price action in Las Vegas Sands (LVS) indicates that after the current market correction is over, it is likely to continue to lead the S&P 500 higher.

The chart of MGM Resorts International (MGM) also looks quite interesting, as the major support levels can be well identified. I will be watching for a move in the weekly OBV back above its weighted moving average to turn the outlook for the stock more positive.

How to Profit: There are no clear signs that the broad market correction is over, and the Spyder Trust (SPY) is likely to have trouble overcoming the chart and retracement resistance in the $138.20-$139 area.

For Las Vegas Sands (LVS), watch for a pullback to the $52.50-$53.50 area.