WINDERMERE, Fla. ( Stockpickr) -- U.S. stocks are once again trending lower today as market players reacted negatively to weak overseas economic data and as the market registered its worst quarter in years. Unfortunately for the bulls, quarter-end window dressing has turned into window undressing as large traders continue to sell and ask questions later.
At last check, the
Dow Jones Industrial Average was down almost 150 points while the
S&P 500 was off by 19 points. The tech-heavy
Nasdaq was dropping by 44 points.
>>5 Stocks With Big Downside Potential
On days like today, I scan the markets for countertrending stocks are displaying relative strength and frustrating the bears. If the short-sellers can't knock these names down today, then there could be an underlying bid on these stocks that makes them attractive buys. An even more bullish sign is a stock displaying relative strength that's either approaching a breakout or breaking out on a big down day like today.
Trading breakouts is not a new game on Wall Street. This strategy has been by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. Here 's a look at a number of stocks that are setting up to break out and trade higher from current levels.