Market Overcomes Resistance On Stock Charts


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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