Stocks Surge As Nasdaq, S&amp;amp;P 500 Today Regain These Critical Levels

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Stocks Surge As Nasdaq, S&P 500 Today Regain These Critical Levels

The major indexes extended gains Tuesday afternoon in a broad advance, and the Nasdaq composite and S&P 500 today have a reason to feel better about their rebounds.

Indexes gapped up at the open and have trended higher all day, a good sign after the market on Monday gave back the bulk of its gains.

The Nasdaq led with a 2.3% vault, as the beaten-up technology sector spearheaded the market surge. Software and semiconductors ranked among Tuesday's best sectors. The iShares Nasdaq Biotech ETF (IBB) rallied 3.5%, giving the composite more fuel.

The S&P 500 rose 1.7%, benefiting from the tech rally and from strength in health care as well. Managed care, medical services, medical research and medical equipment industry groups were up more than 2.5%.

Both the Nasdaq and S&P 500 climbed back above their 200-day moving averages. While that doesn't automatically mean investors should increase exposure to stocks, it is a promising sign. At least, it indicates the indexes are on track with their rebounds.

The Dow Jones industrial average added 1.6%, with 10 of its 30 components up more than 2% each.

Volume was higher on the Nasdaq and nearly unchanged on the NYSE compared with the same time on Monday. Breadth was bullish: Advancers topped decliners by 11 to 2 on the NYSE and by 11 to 3 on the Nasdaq.

Despite the bullish market action, there was a curious lack of breakouts. Imperial Oil (IMO) cleared a cup base but the stock eased below the 34.39 buy point.

Some top-rated stocks are finding support at the 50-day moving average, or are climbing back above those lines.

Advanced Micro Devices (AMD) is rising from the 50-day line but volume is running below average. Unlike many other techs, Advanced Micro held at its 50-day average during the market sell-off. Tractor Supply (TSCO) is looking more firm above its 50-day line.

Boston Scientific (BSX) also is climbing from support. The company reports earnings on Oct. 24. Match Group (MTCH), which is new to IBD Leaderboard, is rising quickly above its 50-day average.

On the whole, leading stocks were behaving well. The Innovator IBD 50 ETF (FFTY) jumped more than 3%, its best performance since April 17.

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Source: https://www.investors.com/market-trend/stock-market-today/stocks-surge-nasdaq-sp-500-today-regain-critical-levels/