With a new market uptrend underway but also under some pressure, Apple, Microsoft, Broadcom and several others are in or near new buy zones. MSFT stock and many other stocks to watch have all earned a spot on the IBD Breakout Stocks Index. Vertex Pharmaceuticals, which continues to soar, also lands a spot on the index.
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks companies on the Breakout Stocks Index, which gets rebalanced weekly.
After clearing a 37.60 buy point in a cup with handle, the BOUT ETF fell below that entry on Tuesday in heavy volume as the Nasdaq dropped over 2%, and slipped again on Wednesday. The ETF has been trading essentially sideways since February 2021, and has once again hit resistance around 39. See if tech and growth stocks, as well as the general market, can shake off recent selling pressure. And look for the BOUT ETF to decidedly clear that area of resistance.
Which Stocks Join Apple And Microsoft On The IBD Breakout Stocks Index?
AAPL Tests Buy Point And Microsoft Sets Up
On March 16, the stock market indexes flashed a follow-through day to launch a new uptrend. It's a positive sign, but technical, macroeconomic and geopolitical issues remain. This week's sell-off so far in the Nasdaq and S&P reflect that uncertainty.
While the S&P 500 is trying to hold its 200-day moving average, the Nasdaq and Dow remain below that benchmark. Plus, for all three indexes, the 50-day moving average is below the longer-term 200-day line. Look for that to reverse to show renewed technical strength.
Within that backdrop, World Wrestling Entertainment has fought its way into a buy zone but remains below the high it hit in April of 2019.
AAPL stock, which was featured in this column last month, has encountered pressure right around the 176.75 double-bottom buy point it first cleared on March 29.
Meanwhile, Microsoft, Broadcom, Synopsys, Trinet, Fortinet, Blackstone, Ares Management and several other stocks on the Breakout Stocks Index continue to set up.
Several real estate investment trusts (REITs) also have their sites set on new buy zones. Life Storage, CubeSmart and Highwoods Properties all fall into that category.
This week's market pullback puts pressure on those budding moves.
As always, monitor individual stocks in tandem with the general market. And use the relative strength line to see how names like Apple, Microsoft, Broadcom and WWE stock are performing relative to the S&P 500.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
