The NASDAQ Composite remains in a downward trend and is showing a descending triangle pattern. The  trend lines indicate support will be tested at around 4100. A break below that level would signal further weakness.

Our trend indicator for the the DJI and S&P 500 shows an upward trend continues. This divergence among the major indexes suggests continued caution, particularly as the Ukranian situation deteriorates and the possibility of further sanctions continues.

No new features
 

Volatility Squeeze

I have done more research on the origin of our squeeze indicator and found that the concept has been around for quite a while, although I haven't discovered who actually originated it. The technique is a refinement of what is known as a "Volaitility Squeeze" and is usually associated with a narrowing of the Bollinger Bands and is alternatively called a Bollinger Squeeze.

If you Google Bollinger Band and Keltner Channel you will find quite a few references and even some good videos describing the technique.

As far as I can tell, breakoutwatch is the only site that actually publishes a watchlist of stocks that are in a volatility squeeze and its a service that I plan to expand on. Initially, to get the word out across the web, I've set up a site called volatilitysqueeze.us that explains the volatility squeeze and how to trade it. Please visit the site and "recommend" it.

As you will have seen from our weekly breakout reports, stocks that are in a volatility squeeze do exceptionally well in the first few days after breakout, which is why they are a profitable trade for the swing trader or directional options trader.