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Nasdaq Today Tests This Key Level, As Leaders Sputter

Stocks held gains as the Nasdaq today made another attempt to climb above a key price level, but leading stocks struggled to keep pace.




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The Nasdaq composite climbed 0.3%, but for the third day in a row could not quite step above the 200-day moving average. That long-term price trend indicator also coincides with prior resistance around the 7485-7575 price level.

The S&P 500, however, added 0.7% and gave itself some breathing room above its own 200-day average. The S&P 500 still has some climbing to do before it reaches another potential resistance level around 2800.

The Dow Jones Industrial Average is now 3% above its 200-day line after rising 1.3% Friday afternoon. Nearly every Dow stock except Apple (AAPL) was higher. Warren Buffett’s Berkshire Hathaway (BRKB) disclosed it is dumping some Apple shares.

Financials JPMorgan Chase (JPM) and Goldman Sachs (GS) led the Dow with gains of nearly 3% each. UnitedHealth Group (UNH) also rose nearly 3% and is nearing the 272.53 buy point of a cup-with-handle base.

Volume was tracking higher compared with the same time on Thursday.

Leading stocks weren’t keeping up with the broad market. Innovator IBD 50 (FFTY) was up less than 0.2%, though it’s trying for a sixth consecutive gain.

The ETF lagged despite an 8% surge in shares of component Arista Networks (ANET). The data center networking technology company beat profit expectations late Thursday.

More stocks broke out Friday, including Microsoft (MSFT). The stock edged past the 108 buy point of a cup-with-handle base but could not hold gains, and volume was flagging.

Intuit (INTU) made it past the 231.94 buy point of its base, but dipped below the entry. Volume was running about half its normal pace, adding to doubts about today’s move to new highs. Intuit was discussed in IBD’s Stock Analysis.

Shenandoah Telecommunications (SHEN) topped the 49.85 entry of a cup with handle. Volume was running below average. T-Mobile US (TMUS) cleared a choppy 20-week pattern in about one-third more volume than usual.

The energy sector led. NGL Energy Partners (NGL) rose above the 13.50 buy point of a cup base in mediocre volume. The stock is extending a rally that started with the earnings report on Monday.

Financials also were leading, with SPDR Financial ETF (XLF) up 1.9%, the best gain since Jan. 16. Toronto Dominion Bank (TD) rose above the 57.03 buy point of a cup with handle, but volume was weak.

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