The Dow Jones Industrial Average regained high ground on Thursday after trading in the negative while the Nasdaq led the upside. All three major indexes dipped midday but reversed higher in afternoon trading.
Dow Jones Today
With less than an hour to go, the Dow Jones Industrial Average rose 0.1% while the S&P 500 gained 0.4%. Bother indexes traded lower in afternoon trading but reversed losses. Small caps showed small gains, with the Russell 2000 up 0.3%. The tech-heavy Nasdaq composite also saw a 1.1% advance, leading the upside. Volume was higher on the Nasdaq and on the NYSE vs. the same on Wednesday, according to IBD data.
Economic reports, including new U.S. home sales and U.S. consumer sentiment, will be released on Friday at 10 a.m. ET.
The indexes started off the day with strong gains before dipping lower in midday trading. But a decent rally in strong volume bodes well for bulls as the indexes try to hold gains. A new rally attempt is very much underway, which means investors should be on the look out for a possible follow-through day. This would restore IBD's market outlook to uptrend from correction. Until then, investors should be watching for new bases and buy opportunities to form in stocks.
Leading The Market Upside
Tech stocks and health care stocks led the upside in the Dow Jones, as Salesforce.com and Merck led the upside among blue chips. Salesforce is attempting to regain its 50-day line after a strong downtrend this year.
Merck is trading inside a buy zone above a buy point of 89.58 from a cup with handle. However, during the first breakout, shares gave back small gains and fell 7% below the original entry point. So amid tough market conditions, one may want to wait for a completely new base to form.
Shares are up over 3% today and 8% for the week. It's been a strong market for health care and medical stocks as several leaders have broken out or are nearing breakouts.
Health care provider and Dow Jones leader UnitedHealth also came close to a breakout above a 507.35 double-bottom buy point. Shares are struggling to gain ascendancy over the 50-day line, but the RS line did hit a new high. Shares gains 1.7% on Tuesday.
Outside Dow Jones: These IBD 50 Stocks Rally
IBD 50 stock Cedar Realty Trust neared a 28.78 buy point from a flat base on Thursday. Shares are just 1% away after rallying over 7%. The RS line also hit a new high ahead of the breakout, a bullish sign.
Meanwhile, a handful of biotechs in the IBD 50 also outperformed. Shares of Legend Biotech broke out above a 50.10 cup-with-handle entry after gaining nearly 7% in afternoon trading. The stock rose in above-average volume and remains inside the buy zone. Additionally, the RS line notched a new high.
Elsewhere, BioMarin Pharmaceutical rose over 4% and came within 2% of a double-bottom base buy point at 86.79. Finally, biotech Cytokinetics rose 7% and neared a 48 cup-base entry.
The stock, however, demands concern regarding its fundamentals with an EPS Rating of only 23. However, the Relative Strength Rating shines at 97.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
