Stocks were mixed in afternoon trading Tuesday as many of the technology leaders that were shelled in the past few days saw initial signs of a rebound.
[ibd-display-video id=3004280 width=50 float=left autostart=true] The Nasdaq composite – which suffered the brunt of the tech sell-off – led with a 0.5% increase in today’s market . Solar, semiconductor, networking and internet stocks rose more than 1%, which explains why the tech-heavy index was outperforming.
The S&P 500 was up less than 0.1% after erasing some gains. The Dow Jones industrial average was off 0.1%. The small-cap Russell 2000 dropped 0.3%, but was behaving more calmly after two days of marked volatility.
Volume was running lower compared with the same time Monday. Decliners led advancers by a 9-7 ratio across the board.
The way stocks behave around the 50-day moving average is a good way to judge their health, and on that basis there were encouraging signs for some beaten-up technology stocks.
Red Hat ( RHT ) and PayPal ( PYPL ) rose back above the 50-day line after making brief dips below the line.
Adobe ( ADBE ), Cognex ( CGNX ) and Microsoft ( MSFT ) held at or near their 50-day lines after sharp declines. Microsoft is forming a flat base also.
Arista Networks (ANET) and Universal Display (OLED) made bullish price reversals after touching the 10-week moving average.
But many other key techs remain below their 50-day lines, including Facebook (FB), Nvidia (NVDA), IPG Photonics (IPGP), Lam Research (LRCX) and Atlassian (TEAM).
In fact, the majority of tech stocks rising in Stocks On The Move were still below the 50-day average. Nvidia had slid more than 13% from its prior high before some buyers stepped in.
On a day short on breakouts, Revance Therapeutics (RVNC) soared past the 28.85 buy point of a flat base in huge volume. The company reported good results from a study on a treatment for wrinkles between the eyebrows. The news sent Allergan (AGN), which is working on a competing product, down 2% in busy trading to a nearly four-year low.
On the downside, department stores were cooling off their rally. The group, which has surged 20% in the past four weeks, was down 3%.
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