The four major US stock indices are telling different stories today. The Dow industrial average is under the most pressure, the S&P 500 is modestly lower, and the Nasdaq Composite and Nasdaq 100 are trading higher.
Here is the snapshot:
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Dow industrial average: Down 473.64 points, or 0.90%, at 52,394.34.
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S&P 500: Down 10.18 points, or 0.13%, at 7,653.25.
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Nasdaq Composite: Up 57.33 points, or 0.22%, at 26,066.19.
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Nasdaq 100: Up 133.19 points, or 0.46%, at 29,091.88.
However, look underneath those headline numbers and the picture is less encouraging. Declining stocks outnumber advancing stocks across all four indices—even in the two Nasdaq indices that are trading higher.
Within the Dow, just five stocks are higher versus 25 lower. In the S&P 500, there are 147 advancers versus 336 decliners. The Nasdaq 100 has 44 stocks advancing versus 56 declining, while the Nasdaq Composite has 1,183 advancers versus 1,827 decliners.
That tells traders the buying is selective. The Nasdaq indices are getting enough support from their more influential stocks to keep the headline readings positive, but the gains are not being shared across the market.
The sector breadth reinforces that caution. Energy stands out with 19 stocks advancing and just one declining. Technology is more balanced at 28 versus 26. Financials, healthcare, industrials and utilities all show considerably more decliners than advancers.
So what does that mean for traders?
The positive Nasdaq readings give buyers something to work with. But can they build on those gains? Can the S&P turn higher and the Dow find support? Or will the weak breadth eventually drag the Nasdaq indices back down?
For me, the technicals help define those answers. A bounce is a start. Getting above resistance—and staying above—is what gives buyers more control. Hold below those levels, and sellers can still lean against them.
In the video, I take a look at the Dow industrial average, S&P 500, Nasdaq Composite and Nasdaq 100, outlining the key technical levels in play, why they matter, and what buyers and sellers need to do next.
This article was written by Greg Michalowski at investinglive.com.