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Blue Chips Lead Stock Market As Apple Breaks Out

Blue chips led the stock market late Monday morning. In the Dow Jones industrial average, heavy weightings Apple (AAPL), Boeing (BA) and Goldman Sachs (GS) notched moderate to strong gains.

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Apple showed strong price-and-volume action. The stock cleared a 190.47 buy point in a four-weeks-tight pattern. Apple gapped up 1.98 to 192.22. Volume initially was 65% above average but faded to average.

The Dow rose 0.8%, while the S&P 500 and the Nasdaq added 0.3% and 0.4% respectively. The small cap S&P 600 advanced 0.5%.

Apple’s most recent base, which was formed in November and December, was stage two. The low in the base was undercut in February, resetting the base count.

As a stock advances, it pauses to consolidate. The first two breakouts are more likely to work than later-stage breakouts. When a stock undercuts the low in a previous consolidation, the base count is reset to one. That means that Apple could act like an early stage stock.

In Apple-related news, Forbes contributor Gordon Kelly reported that Apple’s budget iPhone X will feature “radical” changes.

Meanwhile, Boeing said in a news release Monday that it would team up with France-based Safran to design, build and service auxiliary power units. The deal is expected to close in the second half of this year. Boeing’s stock climbed 1.5% in volume 12% above average.

Goldman Sachs popped 1.2% in the first hour of trade but then retreated to a 0.6% gain. Financial Times reported that Goldman is competing for an investment contract with Lloyds Banking Group. The contract is “one of the largest ever put up for tender in Europe,” according to the Times.

Retail, Airlines Up

Among IBD’s 197 industry groups, medical and energy stocks sank the most. Retail and airline stock groups did best.

Amid a sharp drop in crude oil futures, Ryanair (RYAAY) rose 0.7%, climbing further above its 50-day moving average. The stock has been battling around the line recently. The stock is only 6% below its recent high.

In the retail space, upscale kitchen-furnishings chain Williams-Sonoma (WSM) popped 4% to top a 56.48 buy point. The stock gained 2.14 to 56.76.

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