The NASDAQ consolidation we anticipated last week arrived on Thursday as markets fell globally. The DJI and S&P 500 experienced the biggest losses with both indexes closing below their 50 day moving average. The NASDAQ composite, whose stocks are somewhat less impacted by global trading, was more resilient and remains above the 50 DMA and within the Keltner Channel. Recent history shows that the lower Keltner bound has provided a support level, so a break of that level would confirm weakness and a break below the 50 DMA would signal that we move from consolidation to correction.



The number of breakouts fell to five this week. ADHD broke out of a CwH  pattern and rose to a high of over 12% but profit taking reduced the stock to a loss of 2.5% by Friday's close.

A column identifying stocks that were in a squeeze situation  immediately prior to breakout was added to  the breakout report. This report does not yet include breakouts from the new "Squeeze Play" watchlist, however. That is still under development.

Although  our  market trend indicators remain positive, this is a time for caution while the markets a consolidating/correcting. You will see the number of long  position alerts falling to a dribble while the number of short position alerts rises to an avalanche (there were 29 on Friday). Unless you are an experienced  trader, I recommend staying out of the market until we see if this is just a consolidation of the gains of the last months, or a more serious correction .