The stock market today was on track for the first gain in the major indexes in four sessions.
XDefensive plays — such as tobacco, medical care and utilities — led the gainers.
The Nasdaq advanced 0.6%, while the S&P 500 added 0.2%. The Dow Jones industrial average was just above flat. Small caps gained 0.2% on the Russell 2000.
Volume accelerated on both major exchanges vs. the previous session.
Apple (AAPL) bounced off its 10-week line near 220.83. The stock rose 1.2% in volume that at one point ran 55% above average.
The move to the 10-week line was Apple's first since a breakaway gap Aug. 1. That means the current action constitutes a buy opportunity.
The overall market uptrend's under-pressure label somewhat undermines stock purchases. Buys are more at more risk when an uptrend is under pressure but less risky than when the market is in correction.
Ideally, IBD-style investors prefer a strong uptrend in the general market. A market tailwind can help a stock succeed.
Gauging The Stock Market Pullback
The Nasdaq has fallen about 6% in the current pullback. A pullback of 10% hasn't been suffered since March/April, when the index lost almost 11%. From that low, the Nasdaq rebounded 19.5% in about five months.
Elite stocks have struggled in the pullback. For example, the Innovator IBD 50 Fund (FFTY) dropped as much as 10.6% in this pullback. The exchange-traded fund was up 0.4% late Tuesday morning.
In the blue-chip Dow, gainers led losers by a narrow margin. Walmart (WMT) popped 2% in heavy volume. On the downside, heavy equipment maker Caterpillar (CAT) sagged 2% to test its 200-day moving average. Cat's volume also was heavy.
Two Breakouts
Breakouts Tuesday included oilfield services provider Tidewater (TDW) and oil pipeline firm Kinder Morgan (KMI).
The balance of new highs and new lows continued to tilt negative. IBD's adjusted combined new lows outnumbered new highs 430-to-47 Monday. In Tuesday's action, preliminary data showed new lows holding their advantage.
For updates on this story and other market coverage, check IBD's stock market news today.
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