U.S. Stocks At Record Highs, But Some Leading Stocks Falter

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U.S. stocks traded near record highs, but a number of leading stocks remained broadly lower. Yet, a number of high-rated stocks broke out past buy points.




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The Nasdaq composite, S&P 500 and Dow Jones Industrial Average all made new highs. The Nasdaq and S&P 500 added 1%, the Dow 0.8% in afternoon trading Monday. Small caps resumed their trend of new highs, with the Russell 2000 index up 0.3%.

Volume was higher on the Nasdaq and lower on the NYSE compared with the same time on Thursday. (The stock market was closed for Christmas.) Advancing stocks led decliners by 9-7 on the Nasdaq and NYSE.

Innovator IBD 50 ETF (FFTY) lagged with a 1.5% loss. Several stocks in the IBD 50 were off more than 3%, including Floor & Decor (FND), Repligen (RGEN) and Etsy (ETSY). All three slipped below their short-term 10-day moving averages. Dropbox (DBX) slid nearly 4% and is back below the 24.24 buy point of a large cup base.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 30439.80 +239.93 +0.79
S&P 500 (0S&P5) 3739.31 +36.25 +0.98
Nasdaq (0NDQC ) 12925.58 +120.85 +0.94
Russell 2000 (IWM) 199.56 +0.55 +0.28
IBD 50 (FFTY) 40.97 -0.63 -1.51
Last Update: 2:54 PM ET 12/28/2020

The weakness was broader, as 40 of the IBD 50’s stocks traded lower. Workday (WDAY) fell below its 248.85 buy point, although it remains above a resistance area around 236.

Selling appeared to be targeted, because growth stocks were generally higher. The iShares Russell 1000 Growth ETF (IWF) climbed 0.9%.

With U.S. stocks making broad gains, there were several breakouts to study.

Synaptics (SYNA) broke out of a 19-week saucer base, clearing the 92.41 buy point in heavy volume. Last week, Needham called Synaptics its top pick for 2021, reports said. Railroad operator Kansas City Southern (KSU) cleared the 200.10 buy point of another saucer base.

U.S. Stocks Today: 3 Additional New Breakouts

Monolithic Power Systems (MPWR) is pressing above the 358.79 buy point of a cup base. Volume was below average, however.

In health care, Jazz Pharmaceuticals (JAZZ) topped the 159.08 buy point of a cup base in slightly above-average volume. Inari Medical (NARI) a new issue that works on treatments for blood clots, broke out from a choppy base. It is in buy range from the 85.01 buy point.

Inari joined the early discussion of Monday’s IBD Live show on CAN SLIM investing.

Back To Big Tech

Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, slightly outperformed the Nasdaq with a 1.1% increase. Amazon.com (AMZN) was one reason, as the online retail giant’s shares rallied 4%. The stock was added to SwingTrader today. Also, Alphabet (GOOGL) jumped back above the 10-day moving average with a gain of more than 2%.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia

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