Still Waiting
The Nasdaq and S&P 500 had major breakouts yesterday, but the bottoming patterns we pointed out in several leading stocks two weeks ago haven't led to many breakouts just yet.
The inverse head and shoulders bottoming patterns have led to a few breakouts so far: CMGI
Netegrity cleared 40 resistance in style yesterday, and has long-term upside potential to 60-65, based on the size of that pattern (see chart below). The 40 level should now be support.
Among the patterns we noted two weeks ago, we are still waiting for breakouts on Juniper Networks
and Network Appliance
broke out a couple of weeks ago, and Netegrity
broke out yesterday.
(first chart, must close above 67 to break out); Ciena
(second chart, must close above 63 to break out), and Microsoft
(third chart, must close above 73). And Check Point failed
, having broken too far below the right shoulder it had formed previously (fourth chart). The stock did manage to clear 60 resistance yesterday, however.