Nasdaq Frustrates Bears Erases Thursday's Blowout Loss

U.S. stock indexes tacked on moderate gains midday Wednesday, but the stock market's uptrend technically remained under pressure.

XAutoplay: On | OffThe Nasdaq skipped 0.5% higher, while the S&P 500 added 0.3%. The blue chip Dow Jones industrial average and the small-cap Russell 2000 advanced 0.3% and 0.5%, respectively. Volume fell on the NYSE but was up slightly on the Nasdaq in the stock market today.

The market has kept its cool since Thursday's sell-off. The Nasdaq dropped 135 points that day, but has erased all of the loss over the past four sessions, including part of Wednesday's session.

When the bears can't follow up any better than that, it suggests funds are determined to hold onto most of their positions.

In some cases, beaten-up stocks that have given up their 50-day moving averages are now finding support at the 200-day lines. The restaurant group has some stocks that fit that description. Red Robin Gourmet Burger (RRGB) popped 2.5% midday Wednesday. The stock last week found support at its 200-day line.

Other restaurant stocks finding support at the 200-day area include Domino's Pizza (DPZ), Darden Restaurants (DRI), Dave & Buster's Entertainment (PLAY) and Ruth's Hospitality Group (RUTH).

The best action among restaurant stocks recently belongs to 2015 initial public offering Wingstop (WING). The small-cap stock, which was featured recently in IBD ("Can Next Breakout Work For This IPO Restaurant Stock?"), is on track for a fifth consecutive up day. Wingstop is trading near the top of a 5% buy zone from a breakout past 33.35. The stock is above both its 50-day and 200-day lines.

Institutional favorite Apple (AAPL) edged up 0.3% to 162.10. Apple recently moved above a 156.75 buy point and remains in a 5% buy zone up to 164.59. Apple was featured in this week's Big Cap 20 column ("Could Apple Be Setting Up For A New Run-Up?").

Among IBD's 197 industry groups, laggards were doing the best. Steel, metal ores and retail apparel posted gains. The day's worst performers also came from laggard groups — vehicle parts and oil drillers.

West Texas intermediate crude oil was virtually unchanged, holding above the 47.50 level. Light sweet crude appears to be finding support near 47 and resistance near 50.40.

In the IBD 50, advancing issues led declining issues by about an 8-to-3 ratio. Chip-equipment maker Lam Research (LRCX) appeared on track for a fourth up day in a row. The stock rose 3.60 to 163.81 as it works on a new base.

Meanwhile, landscape equipment maker Toro (TTC) plowed 2% higher. The stock climbed back above a 73.10 buy point that Toro had initially topped on Aug. 8. In fiscal 2016 ended in October, Toro's pretax margin rose to 13.8%. This represented the seventh consecutive year of rising pretax margin.

Are Two Apple-Topped ETFs Setting Up?

Let's block ads!(Why?)

Read Again Nasdaq Frustrates Bears, Erases Thursday's Blowout Loss : http://ift.tt/2w2yolN

Let's block ads! (Why?)