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Stock Indexes Fall Sharply Again; Volume Rises, Apple Gaps Up

Apple was the only winner midday Tuesday among the 30 stocks in the Dow. (iStockphoto)

U.S. stocks stayed within the previous day's trading range midday Tuesday, as volume picked up the pace a bit.

The Nasdaq tested its 50-day moving average line as the tech-leaning index sank 1.2%. The S&P 500 remained below its 50-day line, down 1.4%. The blue chip Dow Jones industrial average fell 1.2%. Volume in the stock market today was tracking slightly higher than Monday's pace.

Blue chips in the Dow were down with one notable exception. Apple (AAPL) gapped up 2.5% in volume 200% above average. Shares rallied on positive iPhone 7 orders from wireless carrier Sprint (S), which said that preorders in the first three days were quadruple vs. the same time a year ago. The move took back Apple's short-term 10-day line, only a day after Apple bounced off its nearly merged 50-day and 200-day moving average lines.

Apple's chart is on the sloppy side, but a 110.33 buy point in a handle remains a potential entry. Is there an earlier entry? The bounce off the 50-day line is a possibility for the aggressive trader, especially since that nearly matches older resistance at 101.89. Yet, with the market uptrend under pressure, many disciplined investors are probably keeping their aggressive side in check. Breakouts work best when the overall market is providing a tailwind.

Also, Apple's lost its aggressive growth profile. The Street expects earnings to fall 10% in fiscal 2016 ending in September, and then rebound 8% in fiscal 2017.

Among top-rated stocks, few were resisting Tuesday's headwinds.

Telecom play Acacia Communications (ACIA) fell 5% in brisk volume but stayed within a high-tight flag pattern.

Texas-based homebuilder LGI Homes (LGIH) slid 3%, but trade was soft.

India-based HDFC Bank (HDB) fell 2% as it headed toward its fifth daily loss in a row. The stock is approaching its 50-day line. Weekly volume on the decline has been below average, a positive development should the stock bounce off the 50-day line in strong volume. Such action would provide a secondary buy zone.

On the upside, China-based online game provider NetEase (NTES) rose 4.5% and then reversed to a 0.7% gain.

Among IBD's 197 industry groups, all except a handful were down. Oil stocks were among the hard-hit issues. West Texas intermediate crude oil fell almost 3% to just under $45 a barrel on a forecast of weak demand.