WINDERMERE, Fla. ( Stockpickr) -- Stocks are trending higher Tuesday, with the S&P 500 hitting multi-year highs and the Dow Jones Industrial Average flirting with the key psychological level of 13,000, following a better than-expected consumer confidence data. The positive consumer confidence came close to sending stocks skyrocketing, but a disappointing report on durable goods orders and housing kept equities in check.
Durable goods orders fell 4% in January, which marked its biggest drop in almost three years, according to the Commerce Department. Home prices fell for the fourth straight month in December, with 18 of the 20 cities tracked posting a decline. On the plus side, consumer confidence jumped to a one-year high in February, registering 70.8 vs. Wall Street estimates of 63, according to the Conference Board.
At last check, the Dow was trading higher by 23 points, and the S&P 500 was advancing by 3.7 points. The tech-heavy Nasdaq was trending up by 18 points. If the market can manage to punch through and close above that key psychological level on the Dow at 13,000, then we could easily see stocks continue to trend higher in the very short-term. This action will force the bears to cover some their short positions as many sectors and stocks continue to breakout and trend higher.Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher. Here's a look at several stocks that are setting up to break out and potentially trade higher from current levels.