The S&P 500 today closed less than 1% from its 50-day moving average after the stock market climbed broadly into the final bell.
XThe S&P 500 added 1.1%, leaving it only seven points to go until it touches the 50-day moving average. That looms as an important test for the stock market because the S&P 500 and Nasdaq met resistance at the line the past several weeks.
The Nasdaq composite climbed 1.3%. It has a longer distance to reach its own 50-day line than the S&P 500. The Dow Jones Industrial Average and Russell 2000 rose 0.9%.
Volume appeared to be lower than Tuesday's, diminishing the quality of Wednesday's advance. But breadth was bullish. Advancing stocks led decliners by a 4-to-1 ratio on the NYSE and by nearly 11-to-5 on the Nasdaq.
Chinese stocks rallied after Hong Kong's government agreed to withdraw a bill that would have extradited Hong Kong defendants to the mainland for trial. The move came after months of massive and sometimes violent protests in Hong Kong.
Protesters still have other grievances against the government. Still, the Hong Kong Hang Seng surged 3.9% and the Shanghai composite rose 0.9%.
JinkoSolar (JKS) leaped 7% in heavy volume. The maker of solar cells and other solar equipment is forming a new base with a 24.94 buy point.
Financials were one area of strength for the S&P 500 today. Mastercard (MA), an IBD Leaderboard stock, broke out of a flat base. Shares rose past the 283.43 buy point, but volume was lower than average.
Meritage Homes (MTH) cleared a flat base with a 66.28 buy point. Volume also was weaker than normal. Yet, Meritage's new high was part of a broader advance in homebuilding stocks.
Pulte Homes (PHM) also broke out of a flat base Wednesday, despite light trading. MDC Holdings (MDC), D.R. Horton (DHI), Taylor Morrison (TMHC) are rising from breakouts that occurred in the past five weeks. M/I Homes (MHO), the first homebuilder to break out in the current cycle, has reached a 20% gain from its 30.13 buy point.
Transports Help S&P 500 Today
The SPDR S&P Transportation ETF (XTN) moved up 1.1%. IBD's trucking industry group rose about 1.6%.
Saia (SAIA) climbed to a new high after activity data showed improvement in a trucking sector that has seen some slowing. August less-than-truckload shipments per workday rose 8.6% and tonnage per workday increased 3.6% from the year-ago period.
Saia, one of the holdings in the SPDR transportation ETF, cleared a nearly 14-month base, topping the 87.15 buy point in active trading.
Logistics and air freight groups climbed more than 1%. Railroads and airlines added 0.7%. JetBlue (JBLU) cut its revenue guidance Wednesday, sending its shares down 4.5%. But United Airlines (UAL) and Delta Air Lines (DAL) reaffirmed their outlooks. United shares rose 0.9%; Delta was nearly flat.
Leading stocks were mainly higher, but the Innovator IBD 50 ETF (FFTY) could not quite keep up with the Nasdaq and S&P 500. The ETF rose 0.9% and remains below the 50-day moving average.
The Federal Reserve's Beige Book survey of economic conditions found businesses generally upbeat despite disruptions caused by trade battles. Stocks hardly moved on the report.
Juan Carlos Arancibia is the markets editor of IBD and oversees market coverage. Follow him at @IBD_jarancibia
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