Markets stayed underwater all day, but closed near UNCH . The Nasdaq remains a little shy at the big round number of 3200, yet a look at both the daily charts of the Nasdaq and S&P 500, show the last 5 days closing at or near their session highs for both benchmarks. Displaying muscle, yet will they fatigue soon? Today we saw 3 week tight breakouts from FUL and AB. They took out triggers of 40.28 and 20.91 respectively. Would have liked to have seen a little more volume with AB. Just as important as breakouts, are how the individual names that do break out, are how they perform post breakout. Remember, the best ones work out right away. Today NTI TWI both of which broke out Friday, behaved just how you would like to see. They moved higher in strong trade today by both around 2%. NTI did reverse but closed with a decent gain. I like to discuss the importance of letting the specific breakout triggers I provide confirm themselves and not to front run the pivot. Some recent examples are DSW CERN. Friday DSW came within 2 pennies of taking out a 69.42 cup with handle trigger and reversed to close about a dollar lower. Today it fell another 1%. CERN came within .09 of breaking through its own 88.42 flat base trigger as well Friday. Today it lost almost 1%. Looking through a bunch of charts that I do each night, and throughout the trading day, was thinking this could be the year of the spin off outperformer. Keep an eye on COP’s spin off PSX, TYC’s spin off ADT, and PFE’s spin off ZTS, and buy them on weakness.

This article requires a Chartsmarter membership. Please click here to join.