Breakoutwatch Weekly Summary 03/28/20

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Weekly Commentary
Patiently Waiting for a Follow Through Day

The NASDAQ set a new intraday low on Monday but went on to close 13% above that low, despite profit taking before Friday's close. There is a possibility that Monday's low will in future be seen as the market bottom, following the passage of the $2trillion rescue package, combined with the support announced by the Fed (new credit facilities,purchase of investment-grade corporate bonds, municipal debt, and U.S.-listed exchange ETFs for investment grade corporate bonds).

The chart below shows that following the low set on Monday. March 23, the index closed higher that day and continued to move higher until Thursday which was day 4 of the (possible) recovery. Under the O'Neil method for recognizing a market bottom, we look for a 'follow-through day' on the 4th through 7th day of the low. The requirement is that a follow through day must meet the condition of closing higher, on higher volume , than the day before. We can see that day 4 did not meet the condition, and neither did day 5.
For an alternative approach, we can look at our Trend Reversal Signals for the NASDAQ Comp.The blue areas indicate when the trend was up, and we see that the trend has not yet reversed.

Trend Reversal Signals
Chart of the Week

No chart of the week.
New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 03/23/20
List Breakouts Avg. Gain
CWH 1 0.84
SQZ 1 -1.14
Breakouts Detail for Week Beginning 03/23/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-03-27 TBIO CWH n 10.72 10.81 91 10.81 0.84% 8.68%
2020-03-25 HMI SQZ y 14.01 14.56 96 13.85 -1.14% 6.07%
*RS Rank on day before breakout.
Breakdown Detail for Week Beginning 03/23/20
date symbol list support close gain %
03/26/2020 GFI HST 5.97 5.64 5.53 %
03/26/2020 GFI SS 6.11 5.64 7.69 %
Top Rated Cup and Handle Stocks as of Friday March 27, 2020
Symbol BO
Company Industry RS
No stocks met our suggested screening factors for our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
Major Index Summary
Index Value Change Week Change YTD Trend1
Dow 21636.8
12.84% -24.18% Down
NASDAQ 7502.38
9.05% -16.39% Down
S&P 500 2541.47
10.26% -21.34% Down
1The Market Trend is derived from our proprietary market model. The market model is described on the site here.
2The site also shows industry rankings based on fundamentals, combined technical and fundamentals, and on price alone. The site also shows daily industry movements.
Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones NASDAQ Composite
NASDAQ Composite
NASDAQ Composite
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Shell Companies
Utilities - Renewable

Most Improved Industry (by change in technical rank2)
Grocery Stores
Grocery Stores
Grocery Stores
Charts of each industry rank and performance over 12 months are available on the site


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