The stock market strengthened at midday Wednesday, as the IBD 50 outperformed and some hopeful signs emerged.
X
Stock market indexes traded at session highs. The Nasdaq composite rose 0.9% as Alphabet (GOOGL) and Microsoft (MSFT) regained their 50-day moving averages.
The S&P 500 added 0.7% and moved further above its 50-day moving average. The Dow Jones Industrial Average climbed 0.4% and is just back above its own 50-day line.
Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35644.78 | +152.08 | +0.43 |
| S&P 500 | (0S&P5) | 4681.76 | +32.53 | +0.70 |
| Nasdaq | (0NDQC ) | 15475.50 | +134.41 | +0.88 |
| Russell 2000 | (IWM) | 219.65 | +1.47 | +0.67 |
| IBD 50 | (FFTY) | 44.30 | +0.57 | +1.30 |
| Last Update: 11:58 AM ET 12/22/2021 | ||||
A few breakouts today added to the tentatively bullish sentiment.
Genpact (G) rose above the 52.22 buy point of a cup-with-handle base. But volume was dull, and the relative strength line still lags the stock price.
Clinical research contractor Icon (ICLR) touched the 301.82 buy point of a 13-week pattern. But shares were slightly below the entry at midday. The IBD 50 stock was added to IBD Leaderboard, where resistance around the 290 level was identified as an alternate entry.
Nutrien (NTR), an IBD Big Cap 20 stock, is trying to rise above its 73.60 buy point. Nutrien also was added to Leaderboard.
Stock Market Volatility Spikes In December
The stock market is under pressure, as The Big Picture has cautioned. Although Tuesday’s rally was a positive step, the major indexes need to show more strength before the outlook improves.
One risk for the stock market is a spike in volatility, which makes it difficult to sustain market direction.
This month, the S&P 500 is averaging a daily percentage move of 1.12%, on pace for its most volatile month since September 2020, according to Dow Jones Market Data. The Nasdaq is averaging 1.5% moves, the most volatile month also since September 2020. Over the past 20 years, its December price moves have averaged 0.85%.
The Russell 2000 is the most volatile, averaging daily moves of 1.76% so far in December. It’s on track for its most volatile month since June 2020, when it averaged 2.04%. And this month is shaping up as the most volatile December in the Russell since 2008. Even the calmer Dow is averaging moves of 0.93%, above its December average of 0.67%.
IBD 50 Outperforms Stock Market
Innovator IBD 50 ETF (FFTY) was up 1.3%. If the gain holds, it will be the fourth consecutive day that the ETF closes at or near session highs.
Building stocks were among the IBD 50’s best in midday trading.
Century Communities (CCS) jumped 2.6%. The homebuilder had wiped away most gains from its breakout but is rebounding after touching the 10-week moving average. Peer D.R. Horton (DHI) also is rebounding after testing its 66.75 buy point.
Louisiana-Pacific (LPX) and Builders FirstSource (BLDR) also were in the top 10 IBD 50 stocks.
The omicron variant has displaced delta as the dominant Covid-19 variant, and is causing a spike in cases. Still, the stock market embraced recovery and growth sectors.
Consumer discretionary, energy, technology, transportation and materials S&P sector rose 0.5% to 1.7%. Technology Select Sector ETF (XLK) is rebounding from a pullback to the 50-day line.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
YOU MIGHT ALSO LIKE:
IBD’s Market Outlook: A Guide To The Different Designations
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
The post Stock Market Leans Toward Recovery As These Sectors Lead; 3 Stocks Hit Buy Points appeared first on Investor’s Business Daily.
