Near Term Low is in – Watching for BreakOuts

We made a new low on Wednesday and then the Nasdaq and S&P 500 gapped up on Friday and closed at the session highs.

Regardless of what we think may happen, we should now watch for a “Follow-Through Day” to confirm the start of a new uptrend.

Ideally, a FTD would occur between the 4th and 7th day. This would be when a major index is up at least +1.5% or more on heavier volume than the prior trading day.

So, from here we are going to start counting the days, unless the market turns south and takes out this past week’s low, as that would end this latest rally attempt.

If a proper FTD were to occur in said timeframe, that would then by definition have us back in a “confirmed uptrend”.

Meanwhile, we will keep screening through thousands of high EPS and RS ranked stocks that have solid fundamentals.

We are looking for those select few which are setting up in sound technical bases and looked poised to breakout.

Now is a great time to get yourself signed up for our free: BreakOuts Alerts!








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