On Wednesday, the Dow Jones Industrial Average hit some resistance at its 200-day moving average as it continued to recover from last week's sell-off. Following a sharply lower open this week, a handful of growth stocks have fought back to regain strength. Two leading tech stocks trading in buy zones are IBD Leaderboard stocks Netflix (NFLX) and Microsoft (MSFT).
XIn the stock market today, the Nasdaq closed 0.2% higher. The S&P 500 fell 0.4% and the Dow Jones traded down 0.7%. Volume was lower on both the Nasdaq and NYSE exchanges vs. the same time Tuesday, according to early data.
The Innovator IBD 50 ETF (FFTY) outperformed on the stock market today, rising close to 0.7%. The growth-focused ETF closed above its 200-day line for the second time this week and remains roughly 3.5% above that key area.
Dow Jones Today
According to MarketSmith chart analysis, the Dow Jones is now trading back below the key 200-day moving average after last week's intense sell-off. The blue chip index fell below the 200-day line last Thursday, after selling off nearly 7% on surging coronavirus fears. The Dow appears to be meeting resistance at this key price area.
Only nine of the 30 Dow Jones components traded higher on Wednesday. Meanwhile, nine of the components were down more than 1%. Among the Dow's biggest decliners were financial stocks Goldman Sachs (GS), JPMorgan Chase (JPM) and American Express (AXP).
Oil stocks were also among those trading lower in the Dow Jones on Wednesday. Exxon Mobil (XOM) and Chevron (CVX) posted declines of 2.8% and 2.5%, respectively.
Meanwhile, tech stocks like Microsoft (MSFT) and Intel (INTC) were among top gainers in the Dow, each up less than 0.4%.
Microsoft stock is still within the 5% buy zone from an alternate buy point at 187.61. Shares of the software and cloud company maintain top-notch IBD stock ratings, including a perfect Composite Rating of 99 and an RS Rating of 86.
Stocks To Watch
On IBD's Stocks On The Move list Wednesday were Lakeland Industries (LAKE), Genmab (GMAB) and chronic conditions management expert Livongo Health (LVGO). These three leaders outperformed in today's stock market.
In addition, online education stocks GSX Techedu (GSX) and Chegg (CHGG) appeared on the list in afternoon trading, after rising 8.5% and 5.8% respectively. The list remains a good place to seek out new potential breakouts.
Chegg, a top coronavirus play and IBD Leaderboard stock, remains extended above an alternate 54.50 buy point. The breakout was from a first-stage consolidation after a yearlong period of sideways movement. According to Leaderboard stock analysis, "despite low volume, a prior entry at 40.38 in a cup with handle was the optimal buy point. Chegg climbed more than 25% from that level, so taking profits is still an option."
The stock has given up much of its gains since a gap up on May 5.
Netflix Another Tech In Buy Range
Elsewhere among the IBD Leaderboard stocks, Netflix remains within a current buy area after rebounding swiftly off the 50-day line. Shares of Netflix rose nearly 3% Wednesday and closed around 448. The buy zone tops out at 448.60, according to Leaderboard analysis.
The relative strength line, which compares a stock's trend against the S&P 500, is lagging slightly, which remains a risk to investors. But the stock maintains a strong 98 Composite Rating.
Follow Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary.
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Dow Jones Stalls At Key Area Of Resistance - Investor's Business Daily
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