The Dow Jones Industrial Average traded at break-even on Wednesday when the S&P 500 and Nasdaq gained strength in heavier-than-normal trading volume. Meanwhile, a handful of shares on the IBD leaderboard traded in or near buy zones, including Dexcom (DXCM) and Netflix (NFLX)
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Today on the stock market, the Nasdaq compound was up 1%. Meanwhile, the S&P 500 was up 0.6% and the Dow Jones was down slightly, 0.1%. The data showed that the volume was higher on the exchanges compared to the same time on Tuesday.
The S&P 500 showed strong support on the 200-day line on Tuesday as the index rebounded above this key area. The main benchmark index continued this upward movement on Wednesday. Additionally, the Nasdaq compound rebounded to its 10,000 level on Tuesday and continued to be higher in high volume on Wednesday, above this key psychological area.
Summary of the US Stock Market |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25793.53 | -19.35 | -0.07 |
| S&P 500 | (Sample; P5) | 3,117.14 | +16.85 | +0.54 |
| Nasdaq | (0NDQC) | 10147.77 | +89.00 | +0.88 |
| Russell 2000 | (IWM) | 141.94 | -1.24 | -0.87 |
| IBD 50 | (FFTY) | 34.68 | +0.26 | +0.76 |
Last Updated: 3:00 PM ET 7/1/2020 |
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As stocks continue to rise in high volume, it appears investors are looking beyond recent spikes in new coronavirus cases. The total number of new cases in the US has exceeded 40,000 for six days in a row as California, Texas, and Florida continue to grow in trouble.
As for growth stocks, the Innovator IBD 50 (FFTY) rose as much as 0.8% on Wednesday. The ETF still remains near the upper edge of a 5% buy zone from a 33.48 buy point of a cup base with a handle.
Dow Jones today
The Dow Jones was trading near the break-even point in the afternoon trade. According to MarketSmith’s graphical analysis, the Dow still remains below a key resistance level on the 200-day moving average.
Fourteen of the Dow’s components traded lower on Wednesday afternoon. Eight of the components fell more than 1%, while five components rose more than 1% each in a mixed trading session. The biggest declines among blue chips included oil reserves. Exxon Mobil (XOM) and Chevron (CVX), down 1.9% and 1.4%, respectively.
Elsewhere in the Dow, Pfizer (PFE) rose 4.8% in the stock market today.
According to an earlier column in Stock Market Today, Pfizer was a bright spot among the blue chips after the drug maker announced positive results for a coronavirus vaccine being developed with BioNTech (BNTX)
While Pfizer’s shares remain within a flat base pattern with a buy point of 39.32, it has yet to claim its 50-day and 200-day lines.
Also among the top Dow Jones winners was tech stocks. Microsoft (MSFT), up 1.2% on Wednesday. Among the top stocks in the Dow Industrials leaderboard, Microsoft remains a winner and currently ranges from a 180.10 cup with a handle purchase point.
Microsoft has a near perfect 98 composite score on a scale of 1 to 99. The composite score represents fundamental metrics and key techniques in a single score. During a confirmed bullish trend, investors should be aware that it is best to focus on growing stocks with a composite rating of 95 or higher.
Tech giant Dow reports earnings in about 17 days, about July 18.
Actions to watch: Netflix actions in the purchase zone
Beyond meat (BYND) and Daqo New Energy (DQ) both were listed on Stocks On The Move on the Investors.com home page. This is a great place to look for potential breakout stocks.
Meanwhile, the Dexcom leaderboard stock underperformed on Wednesday but remains one of the top IBD 50 stocks to watch.
Shares are up more than 121% after bottoming on March 17 at 182.07 amid the collapse of the coronavirus market. Since then, the stock has successfully escaped from a stage two handle cup base with a purchase point of 281.07. Dexcom shares rose another 52% to a record high of 428.59 at the end of May.
Dexcom’s current stage three base, another mango cup formation, has formed almost entirely above its 50-day moving average, which is a very bullish signal.
In addition, among the top stocks in the leaderboard, Netflix traded within a buy zone on Wednesday, after rising more than 5%. Netflix stocks remain above a buy point of 459.07 from a flat-bottom pattern after finding support at the 50-day moving average. Netflix remains strong above this key support level.
According to the leaderboard analysis, “The relative strength line is improving after a dive. The new base remains a first-stage pattern, favoring stocks. Netflix struggled around 450 in May, but at the time I was trying to clear a faulty pattern. “
Follow Rachel Fox on Twitter at @foxonstocks for more market information and comments from Dow Jones.
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