U.S. stock indexes took out some resistance areas on the stock charts Thursday, as the day’s leadership in the market showed diverse participation.
The Nasdaq steamed ahead 1%, while the Dow Jones industrial average and the S&P 500 added 0.9% and 0.7% respectively. The small cap Russell 2000 lagged with a 0.5% gain.
Volume increased on both major exchanges vs. the same time yesterday.
Technicals improved as the tech-leaning Nasdaq rose above the 8,000 price level, which recently acted as an area of resistance. The blue chip Dow and large cap S&P 500 each pegged new highs.
In the tech space, chipmaker Skyworks Solutions (SWKS) gapped up almost 3% in strong volume. Skyworks is 22% off its high but could be shaping a double-bottom base, though there is a fair amount of work needed to complete the pattern.
A double-bottom base is shaped like a W and can be a bullish pattern. The middle peak provides the entry. Skyworks appears to have started work on the right side of the pattern.
Adobe Systems (ADBE) rose 1.5% in average volume. Data storage firm NetApp (NTAP) bounced 0.8% in below-average turnover.
Several blue chip stocks outperformed in the Dow. Big gainers included heavy equipment maker Caterpillar (CAT), up 1.4%; chipmaker Intel (INTC), up 1.9%; Apple (AAPL), up 1.2%; and Nike (NKE), up 1.5%.
Broad Based Rally
Among IBD’s 197 industry groups, leadership had broad reach. Winning industry groups outnumbered losers by an 11-to-2 ratio.
The day’s outperformers included construction equipment, superregional banks, cement, oil drillers, chipmakers, restaurants and biotechs. Losers included RVs and department stores.
In the S&P 500, the day’s biggest percentage gainer was sports apparel marketer Under Armour (UAA). The stock climbed 6% in heavy volume. In a press release Thursday, Under Armour announced an update to its 2018 restructuring plan.
Under Armour plans to lay off 3% of its workforce by March 2019, which the company says will be the final piece of its restructuring plan. The stock is 20% off its high. Under Armour is trading above its 200-day moving average but under its 50-day line.
(For updates on this story and other market coverage, check IBD’s stock market news today.)
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