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Stocks Take A Beating As Nasdaq, S&P 500 Give Up Support

Heavy selling on the Nasdaq flagged the mood in afternoon trade Thursday, as the Nasdaq and S&P 500 were driven back below their 50-day moving averages and the Dow registered its first loss in five days.

X The Nasdaq tanked 1.9% in a sell-off that left few hiding places,  although preliminary data showed volume only moderately higher on the NYSE, but with the S&P 500 dropping 1.5% and the Dow Jones industrial average crumbling 1.2%.

Losses were extremely broad, with only six of 197 industries tracked by IBD gaining ground for the day and all of the gains holding to less than 1%. Airlines, chipmakers and data storage all took a pounding. Steelmakers lost all of their big gap up move from Wednesday and automakers posted an industrywide swoon as Tesla (TSLA), Fiat Chrysler (FCAU), General Motors (GM) and Jaguar owner Tata Motors (TTM) all dropped 2% or more.

Tesla's 3% decline sent it to a test of support at its 10-week moving average. The stock is still forming a base with a 370.10 buy point.

All 30 Dow industrials declined, led by a 4% nosedive by Cisco Systems (CSCO). The networking gear leader reported passing results in its fiscal fourth quarter, but with continued softness in its core computer networking business.  The loss dragged shares back below their 10-week moving average as the stock struggles to fashion a floor in a three-month consolidation.

Goldman Sachs (GS), Apple (AAPL), Nike (NKE) and Wal-Mart (WMT) were only a few among the blue chip names posting losses of nearly 2%. Apple's loss sent shares back near its 156.75 buy point.

Among companies reporting earnings, China names defined the day's range: IBD 50 stock Alibaba Group Holding (BABA) managed a 3% gain after its fiscal first-quarter report crushed analyst expectations. VipShop Holdings (VIPS) crumbled 8% on its Q2 results.

Alibaba's move sent the stock to new highs in powerful trade. The stock was already extended following a rebound from 10-week support.

Align Technologies (ALGN) took the hardest hit among IBD 50 stocks, down 5%, but still extended and in a profit-taking zone after a February breakout.

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