Despite a dismal start, the Dow Jones Industrial Average today passed a key test of support after diving as much as 232 points early in the session.
XThe Dow closed with a 0.1% loss, the S&P 500 gave up 0.5% and the Nasdaq fell 0.6%. The small-cap Russell 2000 edged 0.4% lower. Preliminary figures showed slightly higher volume on both the NYSE and Nasdaq vs. Tuesday's levels.
The Dow Jones industrials made a bullish rebound after testing the 50-day moving average for the second time in three sessions. It tumbled nearly 1% before shaving the loss to 32 points. The index closed in the top half of the day's range, which was positive.
While the majority of the Dow Jones' 30 stocks declined, bright spots included Travelers (TRV), Boeing (BA) and Apple (AAPL).
Travelers, up 1%, extended its recent win streak to close at an 11-month high. Boeing also lifted 1% as it holds above its 200-day line. Apple added 0.9% as it tries to regain its 200-day line. It's come back 33% from an early January low but is still 19% below its Oct. 3 peak.
Medical services, software and chip stocks were among the biggest industry group losers in the stock market today. But airlines, retailers and automakers bucked the decline.
Chip Stocks Slide
Among chipmakers, Microchip Technology (MCHP) lost more than 3% to slide well below its 50-day line. ON Semiconductor (ON), Texas Instruments (TXN) and Analog Devices (ADI) shed 2% or more apiece.
In the chip designer (fabless) group, Semtech (SMTC) and Advanced Micro Devices (AMD) gave up a respective 4% and 3%. Semtech closed below its 200-day line for the first time since late January.
The losses weighed on chip ETFs. VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) gave up 1.5% and 1.4%, respectively. SMH slipped below a 106.37 cup-with-handle buy point, while SOXX closed slightly below a 189.33 handle entry.
Both ETFs still hold solid gains for the year: 20% for SOXX and 19% for SMH, vs. 12% for the broader market as tracked by SPDR S&P 500 Trust (SPY).
Over in the IBD 50, leading names got hit. Enterprise software maker Atlassian (TEAM) led the downside with a 4% loss, but remains above its rising 50-day line and in an overall uptrend.
Digital ad platform Trade Desk (TTD) and security software maker Fortinet (FTNT) fell more than 3% each. Trade Desk is now 15% off its high but 6% above its 50-day line. Fortinet is testing support at its 50-day as it works on a cup with handle base.
IBD 50 gainers included discount retailer Five Below (FIVE) up 2%. The stock was slightly higher after the close following the company's earnings report.
Lululemon Athletica (LULU) and low-fare carrier Spirit Airlines (SAVE) added nearly 2% apiece. Lululemon shares surged in extended trading after Q4 earnings and revenue beat views and the company announced a $500 million share buyback.
The Innovator IBD 50 ETF (FFTY) fell 0.7% in the stock market today.
Please follow Gondo on Twitter at @IBD_NGondo for more on growth stocks, ETFs and how to invest in CAN SLIM-quality market leaders.
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